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Stephen Baker
Stephen Baker,
DIRECTOR
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It’s my security and I’ll enforce if I want to
20 February 2012

A creditor can bring a claim against a guarantor of a debt in preference to enforcing its security against the principal debtor even if the creditor has adequate security.

The recent case of Mark White –v- Davenham Trust [2011] has confirmed the basic principle that a creditor with several remedies can choose which to enforce, at what time, in which order and in what way. 

The existence of security against the principal debtor should not lead to the creditor being in a worse position against the guarantor than if there was no security. It is not open for the guarantor to argue that the creditor should pursue the principal debtor or should realise the security given by the principal debtor first.

For further information, please contact our Dispute Resolution Team on 0118 952 7206 or email Stephen Baker on [email protected] and submit an enquiry.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.

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