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Personal Guarantee Claims

As a company director, you may have signed a personal guarantee giving a creditor the right to make a claim against you, or your assets in certain circumstances. If your business is facing difficulties and you are unable to meet the terms of your agreement with the creditor, you may receive a claim against the guarantee. Whether or not the guarantee is secured, when personal guarantees by directors are called in, it can be distressing. In the worst-case scenario, your home could be at risk and you could face bankruptcy.

At Isadore Goldman, we specialise in helping businesses weather financial problems. We can provide immediate and robust representation and take steps to protect your interests wherever possible.

It may be possible to challenge a director personal guarantee claim and we will go through the details of the claim and give you clear and pragmatic advice on the options open to you. We represent directors as well as others affected by directors’ personal guarantees such as spouses and partners.

As a boutique practice dealing exclusively with bankruptcy, insolvency and restructuring, we are one of the UK’s leading law firms in this complex area of law. We have the understanding and experience to guide you through financial challenges, providing the advice you need in dealing with a director’s personal guarantee claim.

We offer a full range of related services, including:

  • Advice on liability under a personal or corporate guarantee
  • Defending personal guarantee claims
  • Checking for potential unenforceability of a personal guarantee
  • Negotiating satisfaction of a personal guarantee
  • Advice for spouses and others affected by a personal guarantee

If you are a company director faced with financial difficulties and the possibility of claims being made against you, there is more information on our “Claims Against Company Directors” page.

For immediate, expert advice on personal guarantee claims, you can contact your local Isadore Goldman office in London, Norwich or Portsmouth, or email


Why choose Isadore Goldman for help with personal guarantee claims?

Accreditation from the UK’s leading legal directories

At Isadore Goldman we are recognised by both of the country’s leading legal directories for our specialism in dealing with insolvency and restructuring, namely Chambers & Partners and the Legal 500.

We are noted to be creative problem solvers, focused on securing the best possible outcome in the most challenging of circumstances.

Specialism and experience

As specialists who deal solely with bankruptcy, insolvency and restructuring, we have an exceptional depth of understanding and the ability to find effective solutions. We have many years of experience behind us, including in representing high profile clients and businesses.

Clear and pragmatic legal advice

Our assessment of your case will be honest and realistic. We will discuss the options open to you and the outcome that you can expect, taking into account the situation you are in and the strength of the claim against you.

Bespoke advice and representation

Our suggestions for handling your situation will be tailored to your needs and to the outcome you would like to achieve. Our solicitors have the experience to find innovative solutions and will take all possible steps to protect your assets.


Advice on liability under a personal or corporate guarantee

If you have signed a personal guarantee as a limited company director and you have been advised that the guarantee is being called upon, you should speak to a solicitor without delay. We can provide immediate strategic guidance and ensure that steps are taken to protect your position wherever possible. We handle a full range of directors’ guarantee claims and offer expert representation and sound and pragmatic advice.


Defending personal guarantee claims

Where possible, we will provide a defence if you are facing a personal guarantee claim. There are a range of options that we will consider in the light of the circumstances of the claim against you, including:

  • Where it can be established that the guarantee is not enforceable
  • The guarantee has already been released
  • The correct procedure has not been followed in calling in the guarantee
  • The terms and conditions of the guarantee are ambiguous
  • The guarantee claim may not be for a liquidated debt
  • The time limit for bringing action to collect the debt has passed; this is either six years or twelve years if the guarantee was executed as a deed
  • You were coerced into signing the guarantee
  • There was fraud or misrepresentation


Checking for potential unenforceability of a personal guarantee

There are several points which may make a personal guarantee unenforceable, or provide you with a defence.

If the creditor varied the terms and conditions of the guarantee without notifying you, the courts may decline to enforce it. Similarly, if you have been given more time to pay or a further advance has been made to you and there has been no agreed change in the terms and conditions to reflect this, then the creditor might not be able to rely on the original guarantee.

It is also possible that the guarantee may fall foul of the Unfair Terms in Consumer Contracts Regulations 1999. If we can establish that you are a consumer, then if the document contains provisions that do not deal fairly with you, this could be a successful defence. This may be an option for the spouse of a director who has signed a guarantee that puts their shared home at risk.


Negotiating satisfaction of a personal guarantee

If a personal guarantee is valid and enforceable, the creditor may be open to entering into negotiations to settle this. It is important to start the process as soon as possible while a business is still functioning and before it reaches the point of insolvency.

We can discuss whether this is a likely option in your case and, if it is, enter into negotiations with the creditor on your behalf. They may be prepared to reduce the amount paid in return for a faster satisfaction of the debt or alternatively, agree to a schedule of repayments.

If there is a question over the enforceability of a personal guarantee, representation by expert personal guarantee claims solicitors will give you a tactical advantage. Creditors may be reluctant to test the guarantee in court against an experienced legal team, particularly if they have many similar documents in force with other borrowers. This will encourage them to be open to negotiating a settlement. The strength and expertise of our team will be a substantial advantage to you.


Advice for spouses and others affected by a personal guarantee

Personal guarantees are often drafted widely to give the creditor the best possible chance of collecting on the debt, should it need to be called in. This can mean that a spouse or partner can be asked to sign a personal guarantee allowing a creditor to enforce it against shared assets such as property, shares or investments.

If a spouse did not receive independent legal advice before signing the guarantee or they were unduly influenced or coerced into signing, they may have a valid objection to enforcement.

Where a spouse has trust and confidence in their partner and their financial affairs are under their control and they are not consulted over financial arrangements, they may be able to claim undue influence or duress.

Similarly, if a spouse signs a guarantee after being given misleading information, this could be an abuse of trust.

If you are facing a claim as a spouse, speak to one of our expert solicitors about the statement of guarantee you have signed.


Contact our solicitors for help with personal guarantee claims today

For clear and practical advice about dealing with directors’ personal guarantee claims, please speak to our expert team today. You can get in touch at one of our offices in Norwich, Portsmouth or London, or email