Example: The following statement was posted online: "The fact that IBAS have the knowledge and provide assistance in formulating the strategy, which was provided to me under membership and which provided the necessary case law ammunition and support (letters continually making the correct points) to prevent the bank gaining the upper hand (preventing me making offers which I wanted to make, just to get this case against me closed, and which would have destroyed any defence) - that strength of position then also enabled me to 'face off' the bank's threat (although the bank/solicitors knew their claim was flawed) and this strength of resistance then forced them to discontinue their action - this is all a matter of fact and something which IBAS should be very pleased about." & "I understand that so many cases are lost before they start because under threats from the bank the customer provides an offer of payment - without understanding there may be a defence to the bank's claim. Having been induced to make that offer, the bank then goes for the jugular. Apparently I am one of a very small band of successful litigants, which I wouldn’t have been without IBAS behind me." 

This case illustrates how cautious a guarantor needs to be - and just how dangerous Director's Personal Guarantees are for those who have signed them. It illustrates how IBAS guides those with Personal Guarantees in a resolution - but each case 'turns on' it's own facts and full information. The 'full' information is rarely immediately available. Therefore, telephone advice sought or taken at the time of a 'call' by the bank on the Personal Guarantee is a very risky strategy for any PG provider - and should be avoided.

The current practice (for all banks) chasing a Personal Guarantee demand debt is that their debt recovery units obtain by any means possible a signed asset/expenditure form or personal financial statement. This is now obtained by banks immediately at or after demand has been made on a Personal Guarantee. A signed form of that nature will provide the bank with their first 'counter' to any possible defence/s to their claim. Signing any financial disclosure or providing the bank with such personal information will often destroy any later attempt by the customer (or indeed anyone else) to negotiate the debt or defend the claim on the Personal Guarantee. Some bank debt recovery officers are telephoning customer's immediately after demand and their priority is to immediately obtain payment proposals - so they can enforce the debt legally and quickly to their advantage. Enforcement inevitably means 'pressure' on the family home.

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