Personal Guarantees: Reaching a Settlement: 2. The Guarantor
When trying to settle a personal guarantee, there are a number of factors which influence the ease and speed at which a deal is reached.
In this article we consider those issues surrounding the Guarantor that can influence the outcome of any settlement.
In addition to the Guarantor’s financial circumstances the health of the Guarantor, and family members, can be significant. The bank/organisation pursuing the guarantee ought to be mindful of these factors and accordingly adapt their procedures to treat such situations with the necessary sensitivity; unfortunately not all organisations act appropriately in this regard.
The experience a Guarantor has in dealing with such personal guarantee claims is an important factor in determining a satisfactory settlement. This factor comes into play especially in having an understanding of areas which can be genuinely contested and those that may be valid as a complaint but would have little impact on the outcome if it was tested in the judicial process.
Understanding the detail of how security documentation should be constructed can be crucial, particularly if debts are secured, for example on a residential or commercial property. This is difficult for a Guarantor unless they have experience in dealing with these sorts of matter on an ongoing basis.
Finally knowledge on how the organisation (or organisations) that are pursuing a guarantee operate is critical to the process, as those idiosyncrasies can have a dramatic impact on the outcome. In dealing with so many personal guarantee issues with such organisations we can provide some real added value in this regard.
07 September By Mel Loades