If a bank perceives that a borrower is not been open and truthful they are in general they will pursue the debt vigorously.   Also like the Creditors Voluntary Arrangement, the bank will most likely ensure that all possible assets are realised and that their debt is reduced to its lowest level.   

However whatever the circumstances it is important to take the right steps

1.  Appoint a good legal representative

2. Ensure the guarantees are validly drawn up

3. Understand your rights and the legal processes regarding your home.  E.g. if you are the only guarantor in a house that is in joint names then they would only have access to half of the property.

A person has no automatic right to hold onto their home.  There are protections in place to ensure the home owner and family needs are considered but they are not absolute rights. The courts do give the guarantor every opportunity to enter into an arrangement.  In this regard it is vital that they engage in the process of consultation as the courts will be unable to give protection where a guarantor has not represented themselves in the process properly.  

These actions are now being dealt with in the Circuit Court and it is expected that this may slow down the process of a bank pursuing a settlement and give the guarantor greater time to reach an agreement.  However it is not a solution; in the end an agreement must be negotiated to everyone's satisfaction.