Personal guarantee dilemma

[AnthonyC]

A guy I know took out quite a large loan for his then girlfriend to start a business. As you can probably guess, they are no longer together and the money has gone. The business never got going and she rode off with the money.

Does he have a leg to stand on here re paying the money back, or is there any way he can ease the situation ? The money was lent on a Personal Guarantee on his house.

Any advice / experiences welcome.

Thanks

[scotal]

What written agreement does he have regarding her repaying the cash?
Nothing? If it ain't written down, it didn't happen.


The debt on the house is his, if she is not on the loan, and the lender won't give a flying fk for any stories about business capital.

[UpTheIron]

He borrowed the money, secured against his property. Regardless of whether he gambled it away, spent it Aerofoil-style, gave it to Battersea dogs or wasted on it on somebody elses failed business idea is irrelevant. He will have to meet the terms of the loan agreement with his lender or face the penalties / consequences.

[Chessers]

As far as I understand it if he signed a PG for the loan against his house then he is pretty much fecked I am sorry to say.

Was it co-signed or just him?

[AnthonyC]

I understand it was just him who signed for it. I'm guessing the bank would be acceptable to extending payment terms etc. Currently he is paying £3k per month !

Thanks for the response

Anthony

[Lurking Lawyer]

AnthonyC said:

The money was lent on a Personal Guarantee on his house.

I'm not sure that makes sense - if it's secured on his house, it's not really a personal guarantee but more of a straightforward charge (i.e the same as a mortgage if he had taken it out for his own benefit).

A personal guarantee is usually not secured - if, for instance, she had taken out a loan and he had agreed to make himself jointly liable if she defaulted on it.

In answer to your question, it seems unlikely he has a leg to stand on.