Complicated family asset structure: £400k settled for £15k


Client was a director of a property development company during the 2000s and, as with many businesses, was caught by the 2008 crash; with a bank personal guarantee of £400k.

The client struggled to keep the business going but within a year the bank pulled the funding.

Due to the complexity of the issue and the fact that there was strong family involvement, in a vein attempt to keep things going, near and distant family members lent sums to the guarantor in return for charges on most of his remaining business and personal properties.


Due to the complexity of the guarantors’ affairs the bank struggled to see their way through to realising any substantial value. This, coupled with a medical condition which made it difficult for the guarantor to generate income, the bank agreed a full and final settlement of £15k on a liability of £400k.

20 April 2015 By Mel Loades

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