In each of these blogs, I will try and provide some insights into how the institutions such as banks approach their calling in of personal guarantees.
Most of the mainstream banks have centres that deal with the chasing of personal guarantees- so although the local manager might send the initial demand letter and try to negotiate a repayment plan, they have little authority to do a deal and will often suggest taking an interest bearing loan.
An agreement at this stage would be a result for the bank, but certainly not for the person who signed the personal guarantee!
However, the longer the matter is being dealt with at this level, the more time the personal guarantee holder buys themselves, so don't be in too much of a hurry to move it on to the banks' centre! And remember, many personal guarantees are at best dubiously enforceable and many are not enforceable at all.
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