Home Experience Lawsuit against a private individual, with a claim to cover almost 1 million euros in company liability
Action against a private individual to cover the company's liabilities of nearly EUR 1 million

Lawsuit against a private individual, with a claim to cover almost 1 million euros in company liability

When signing an agreement with a financial institution, people often look at risks based on their current situation, which can change in the long run, and it is critical to know in advance what the consequences of negative changes may be, in order to start looking for solutions early.

Client's story

Our client, who was a shareholder and an official (board chairman) in a company, was the guarantor for the company’s obligations towards a credit institution. Due to the insolvency of the company, the client became liable to cover the remaining obligations of the company, amounting to almost 1 million euros, as a private individual.

Solution

With the legal assistance of the firm and active communication with representatives of the bank, it was possible to reach an agreement, whereby the client was relieved of the remaining guarantor liability, paying the bank compensation, the amount of which did not significantly exceed the amount that would have been owed in the event of insolvency proceedings for a private individual. This meant that the client was able to continue their business activities without having to invoke private individual insolvency proceedings that would have created obstacles in the client’s everyday business.