www.company-debt.co.uk

[Peter Long]

I am looking at the option of pre pack administration for my company. I have given a personal guarantee for the business bank loan. What will happen to this if I go through with the pre pack option? Will I be liable?

[Derek Cooper]

Hello Peter and welcome to the forum

If you have given a personal guarantee for any of your company's debts, these will normallt be called in by the creditor if the company can not or will not pay. As such, if you do a pre pack, it is almost certain that the bank will start to chase you personally for the outstanding debt.

The solution to this may be to consider a personal debt solution such as an individual voluntary arrangement (IVA) at the same time as the pre pack.

[Steven Jackson]

Hello Peter

As Derek has said, if you are a personal guarantor for a company debt which is at risk of not being paid, you will be come personally liable for the debt. As such, you may need to combine your plan to undertake a pre pack with a personal debt solution.