Hey everyone, I’ve got a tricky situation and could use some advice. I left New Zealand in March 2021 but had a business still running there. Unfortunately, it went into voluntary liquidation in June 2023. Now I’m in the UK, and a debt collector is after me because I signed a personal guarantee for a loan in October 2021. I was already living in the UK when I signed it, but the loan broker told me not to mention that to the loan company. I own a home in the UK with around 35k equity. What can they actually do to enforce this? Any advice would be appreciated!
I think they can enforce it through UK courts if they get a judgment in NZ first. Something about a reciprocal agreement? Not 100% sure though.
Jules said:
I think they can enforce it through UK courts if they get a judgment in NZ first. Something about a reciprocal agreement? Not 100% sure though.
Oh wow, that’s good to know. Do you mean they have to go through some legal process here after getting a judgment in NZ?
Jules said:
I think they can enforce it through UK courts if they get a judgment in NZ first. Something about a reciprocal agreement? Not 100% sure though.
Yeah, pretty much! They’d need to get it recognised by a UK court. Once that’s done, they could try for your assets here.
Jules said:
I think they can enforce it through UK courts if they get a judgment in NZ first. Something about a reciprocal agreement? Not 100% sure though.
FYI, it’s called the Reciprocal Enforcement of Judgments Act. They can register an NZ judgment here and go after your property.
Since you’ve got equity in your home, they might try for a charging order. That could lead to a forced sale if things escalate.
Asa said:
Since you’ve got equity in your home, they might try for a charging order. That could lead to a forced sale if things escalate.
That sounds scary. Would they really force a sale for this kind of debt?
Asa said:
Since you’ve got equity in your home, they might try for a charging order. That could lead to a forced sale if things escalate.
Not always. Courts usually consider your ability to repay before approving that. But yeah, it’s a risk.
What about the other guarantor? Can’t you split the liability with them?
Skyler said:
What about the other guarantor? Can’t you split the liability with them?
Good point! My fellow director also signed, but I’m not sure how to approach splitting this fairly.
Skyler said:
What about the other guarantor? Can’t you split the liability with them?
I think creditors can go after one of you for the full amount, but you could ask the other guy to pay their share.
If you’re struggling financially, maybe offer a payment plan or a lower settlement amount. Like 10-20% of the total?
Shannon said:
If you’re struggling financially, maybe offer a payment plan or a lower settlement amount. Like 10-20% of the total?
Yeah, I was thinking of that. Do you think they’d go for a small monthly payment for 10-20% of the debt?
Shannon said:
If you’re struggling financially, maybe offer a payment plan or a lower settlement amount. Like 10-20% of the total?
Totally worth a shot. Just be honest about your situation and offer what you can realistically afford.
Was the broker’s advice not to disclose your UK residency legal? Could that affect the guarantee?
Liam said:
Was the broker’s advice not to disclose your UK residency legal? Could that affect the guarantee?
I’ve been wondering about that too. The broker said it wasn’t a big deal, but now I’m not so sure.
Liam said:
Was the broker’s advice not to disclose your UK residency legal? Could that affect the guarantee?
It might complicate things for the creditor, but it probably doesn’t change your obligation under the guarantee.