Topic: Finance and loans

Carol’s business was placed into liquidation and wound up. However, Carol had signed a personal guarantee for a loan to the business to purchase two trucks. The trucks were sold and the finance company pursued Carol for the residual balance. At the same time, Carol had issued proceedings against her ex-partner in the Family Court for the division of their relationship property.

Vijay signed for two loans with a finance company on behalf of his employer’s company and gave personal guarantees. Vijay resigned from the business after not being paid and shortly afterwards the business wound up. The finance company repossessed and sold some of the business’s assets but then contacted Vijay to collect the balance of the debts. Vijay said he couldn’t pay and the finance company said it would have to start debt collection which may result in Vijay losing his house. Is there anything Vijay can do?

Carol’s business was placed into liquidation and wound up. However, Carol had signed a personal guarantee for a loan to the business to purchase two trucks. The trucks were sold and the finance company pursued Carol for the residual balance. At the same time, Carol had issued proceedings against her ex-partner in the Family Court for the division of their relationship property.