If you have signed a personal guarantee as a condition of a business loan, then your personal assets such as home,

property, car etc may be at risk if your business is in financial difficulty. You will be liable for the debt secured by the guarantee Signing a personal guarantee for a business loan is a serious commitment and should always be given very careful consideration. It is recommended to seek  professional advice before making such a commitment especially if major personal assets such as your home are used as security. It is advisable before agreeing to the guarantee to take our personal guarantee insurance

If you default on the guarantee, failing to respect its terms this will normally mean that you could lose the assets used to in the guarantee to secure the loan, this is typically a directors home or other property You will  normally receive a letter from your bank or lender stating their payment terms. If you do not respond to  put right the default within the prescribed time period , a lending will normally begin court action in order to secure a charging order against your asset. A charging order is issued by the court and will give the lender rights or a "lien" over your asset, your home for example. Often it will be accompanied by an order for a forced sale of the asset