(Querist) 25 November 2017
This query is : Resolved
My Brother took a business loan from one of the government bank, in his partnership firm I am not a partner in his firm I have my own proprietorship firm myself and my family members stood as a personal guarantor & collateral security to his firm for business loan against security of Mortgage of house and personal guarantee.
We give personal guarantor & collateral security to his partnership firm but now he changes his firm from partnership to pvt ltd company. he as well as bank did not inform us and not even take sign for pvt ltd company.
Wanted to know following things in this regard,
1. Can we withdraw our personal guarantee for Bank.
2. If Yes, what is a procedure to withdraw our guarantee and is there any liability remains post withdrawal of guarantee.