VIC Prospa business loan guarantor

[Renee foxx]

Hi
i am currently a guarantor on a prospa business loan. The borrower has failed over and over again to pay and i have now been given paperwork to state that he is overdue in multiple payments. I have received maybe 3 phone calls for the whole duration of the loan to tell me he hasn’t paying i have text him and asked him to pay and he says he has.
Apart from that i have had barely any information on how much he was behind until today when prospa rang me to tell me the amount. Do i have legal grounds to sue or am i able to revoke my guarantee? I was also bankrupt at the time the documents were signed so not sure if they didn’t do their due diligence or i am at fault for not disclosing it seeing as I wasn’t asked?
Any help would be greatly appreciated . Thankyou additonial information the business has been sold but not the company that the loan is under he didn’t pay out the loan i am also still a shareholder of the fore mentioned company That is closed, but not wound down or anything.
Cheers

 

[Rob Legat - SBPL]

You gave a guarantee while you were bankrupt? That, let alone anything else, means you need to go and see a lawyer immediately for specific advice - in other words much more than you’re going to get here. You‘ll need advice on whether you’ve breached your obligations in bankruptcy, whether you’ve fraudulently misrepresented your situation to the lender, what rights and obligations you have under the guarantee, and what rights you have against the borrower. This is not a simple or easy exercise.

 

[angelawalshes]

Sorry for resurrecting an old thread, but I stumbled upon your post while searching for similar experiences. I totally get how frustrating it must be to deal with a borrower who consistently fails to pay. It sounds like you haven't received much communication or clarity from Prospa regarding the overdue payments until recently.
It's worth considering legal advice to understand your options. It's interesting that you mentioned your bankruptcy status at the time of signing the documents. Perhaps Prospa should have conducted due diligence or asked about it. However, I think it's essential to consult a professional to assess the situation properly.
If you're looking for more information on banking and finance for companies, I came across this helpful resource: https://www.businessfinanced.co.uk/ . It might provide some insights.