Garantor does not want to pay owed amounts.

[ninuzzu]

He is the company director for which he is garantor. The company owes a lot of rent and I have given him a statuary demand notice (which he has not appealed against) for this outstanding amount. He now argues that he does not want to pay because the company (no proof has been given) has a claim againt me. My question is this: irrespective of what is said doen't the garantor have to pay what he garantees?

[redcrx]

issue a court summons and then see if he has any defence or proof of you owing him

[ninuzzu]

I have. The courts have been allowing him to delay the proceedings for over a year ( he denies receiving notice by not giving a fixed address, he then hands in documents requested in directions months late, all excuses accepted without reserve up to now by the Royal Court of Justice in London).

[redcrx]

after a year do you not think it wise to get a solicitor onto this?

[ninuzzu]

I already have but for some reason he does not want to give me a clear reply on the garantor question.

[cassa333]

Couldn't he just go bankrupt?

[ninuzzu]

That is what I'm trying to get the court to decide. They do not answer, the same my solicitor.

[AKMild]

Depends on the wording of the guarantee. If the company does have a claim against you, then it may be able to offset the claim against the money it owes you, and if its claim is greater than your claim then on a net basis the company doesn't owe you any money - therefore the guarantor has no liability to you.

However, a well-worded guarantee will contain a clause to the effect that if demanded, payment must be made without set-off or counterclaim, in which case the guarantor would owe you. If he has not sought to have your statutory demand set aside then you can make him bankrupt.

This would be meat and drink to any insolvency lawyer - I suggest you consider changing yours.

[ninuzzu]

Unfortunatly the lease is not worded as binding as outlined AKMild. Another point I do not understand is that if in any other situation (a bank for example) there is a personal garantee and a request is made for that payment to be made, it either is or you suffer the consequences. Does our judicial system follow other rules?