I was the director of a company that the other directors and I sold. There is still a bank loan in the company’s name but it is secured against my home. What happens if the other directors just walk away? Am I stuffed because I’m the guarantor or they still responsible for the loan as well?
Sorry, to clarify, there is a loan on the business interest that you SOLD and are no longer associated with that has a loan that is guaranteed against your home? If this is the case,,, IMO, i would be straight to the lawyer that allowed this to occur and be ‘sold’ to the new owners and also seek a way to resolve this immediately.
Am curious though, if above is the case, why would you sell and pass on the loan to the new company AND have your personal assets still tied to an entity you have no interest in.. Am a little confused by this..
But yeah, seek legal advice ASAP and before you go to the bank or do both at the same time.. Bank will not relinquish this obligation unless someone else takes over the security unless the business position has changed and has its own assets to substitute.