Letter from Euler Hermes? Here's how to handle a trade-credit claim

A letter from Euler Hermes — now branded Allianz Trade — usually relates to a commercial transaction that has gone wrong. Euler Hermes is the world’s largest trade-credit insurer, paying out to businesses when their customers default on invoices. Once they’ve paid the claim, Euler Hermes inherits the right to recover the debt from the underlying debtor — and that’s where this letter comes from.

Most Euler Hermes claims sit on businesses, not individuals. But where you’ve signed a personal guarantee as a director, traded as a sole trader, or been a partner in an unlimited partnership, the debt can land on your personal name. This guide explains what Euler Hermes can do, how those personal liabilities work, and how an IVA covers personal-guarantee debt.

Who Euler Hermes are

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Euler Hermes is a wholly-owned subsidiary of Allianz SE, the German insurance giant. The group rebranded internationally to Allianz Trade in 2022, although the Euler Hermes name still appears on UK correspondence and contracts. Allianz Trade insures around €1 trillion of business-to-business transactions globally and operates in over 50 countries.

In the UK, Euler Hermes is authorised by the Prudential Regulation Authority and regulated by the FCA for insurance conduct. Their collections arm operates within the Credit Services Association framework on consumer-aspect claims.

When a Euler Hermes claim becomes personal

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Most Euler Hermes recoveries are pure B2B and never touch your personal credit file. Personal liability arises in three main scenarios:

• Personal guarantee — as a director or shareholder you signed a guarantee for a company debt. When the company defaults and Euler Hermes pays the supplier’s claim, they pursue you personally on the guarantee.
• Sole trader — you traded under your own name, not a limited company. Trade debt is your personal debt.
• Partnership (non-LLP) — partners in a traditional partnership are jointly and severally liable. Euler Hermes can pursue any one of you for the full balance.

If the company is a normal limited company and you didn’t sign a guarantee, the debt stays with the company. Always check the original contract before agreeing anything.

What Euler Hermes can and cannot do

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Euler Hermes can:

• Write to you and call you on details you provided to the original supplier
• Issue a statutory demand for an undisputed personal-guarantee debt over £5,000
• Apply for a County Court Judgment through the courts
• After a CCJ, pursue charging orders, attachment of earnings or High Court enforcement
• Petition for your bankruptcy after a statutory demand expires unpaid

What they cannot do:

• Force entry to your home
• Take goods without a court-issued warrant
• Threaten criminal action — debt is civil
• Pursue you personally on a limited-company debt where you didn’t sign a guarantee

The two checks worth running first

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1. What did you actually sign? Pull the personal guarantee, supplier contract or partnership agreement. Check the amount, the trigger, the term, and whether the document was executed as a deed (which extends limitation to 12 years).
2. Statute-barred check. Six years in England and Wales since the last payment or written acknowledgement, with no court action started. Scotland is five years. Don’t make a token payment before checking dates — it resets the clock.

How Euler Hermes pursue personal claims

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Euler Hermes is a commercial recoveries operation with deep pockets and experienced solicitors. On a personal guarantee they typically:

1. Issue a formal demand letter setting out the claim and the deadline
2. Follow with a statutory demand if the debt is over £5,000 and undisputed
3. Apply for a CCJ if the statutory demand is not satisfied within 21 days
4. After judgment, pursue charging orders or instruct High Court Enforcement
5. Consider a bankruptcy petition where the asset position justifies it

They do not give up easily on commercial-scale claims — but they will engage with formal insolvency processes that include personal-guarantee debt.

Routes out

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• Negotiate a discounted lump-sum settlement if you have access to funds.
• Affordable repayment plan based on the Standard Financial Statement and supporting personal income evidence.
• IVA to combine the personal-guarantee debt with all other unsecured personal debts over a 5–6 year term — the unpaid balance is written off at completion. Eligibility starts at around £5,000 of total unsecured debt.
• Bankruptcy if the personal-guarantee debt is large and unaffordable, and you accept the asset and credit consequences.
• Defend the claim if the guarantee was poorly drafted, defectively executed, or you have a counter-claim against the underlying supplier.

Pitfalls with Euler Hermes claims

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• Don’t ignore a statutory demand. A 21-day clock runs to a bankruptcy petition.
• Don’t pay anything on a guarantee you may be able to challenge. Take legal advice before paying.
• Don’t conflate the company debt with your personal debt. They may be different positions.
• Don’t assume the limitation period is six years on a deed — it’s 12 years under the Limitation Act 1980 for instruments executed as deeds.

Frequently asked questions

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Are Euler Hermes bailiffs? No. They are a credit insurer and commercial collector. They cannot force entry or take goods.

Will an IVA include a personal-guarantee debt? Yes — once crystallised against you personally, it’s unsecured personal debt for IVA purposes.

Can Euler Hermes make me bankrupt? On a personal-guarantee debt over £5,000 that’s undisputed, yes — through a statutory demand and bankruptcy petition.

Is Allianz Trade the same as Euler Hermes? Yes — Allianz Trade is the rebranded global identity. Euler Hermes is still used on legacy UK contracts.

Related guides

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• BW Legal — large-scale litigation collector
• Lowell Financial — major debt purchaser
• Can debt be written off?
• How long can I be chased for a debt?
• How do I apply for an IVA?