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Debt As A Guarantor!
don66
Posts: 7 Forumite
Hi All I Am A New User 2DAY, AND HOPEFULLY SOME 1 WILL BE ABLE TO HELP ME WITH MY PROBLEMS.
ME AND MY PARTNER BOTH BOTH OWN OUR OWN BUSINESS AND WE BOTH AGREED TO BE MY FATHER IN LAWS GUARANTOR, HIS BUSINESS IS NOW GONE INTO SERIOUS DEBT AND HE HAS REMORTAGED UP TO THE HILT TO KEEP THE BUSINESS AFLOAT WAITING FOR BETTER TIMES TO COME BUT NOW HAS NO MORE EQUITY IN THE HOUSE TO HELP THE BUSINESS OR HIS OWN PERSONAL DEBTS, HE HAS HAD AN IVA TO SORT OUT HIS CREDIT CARDS BUT HE STILL HAS AROUND 50,000 DEBT WITH A FINANCE COMPANY WHICH HE OWES AND NOW CANNOT PAY! THEY HAVE SAID TO HIM THAT IF HE CANNOT PAY (WHICH HE CANT) THEN WE ARE NEXT ON THE LIST.
WE HAVE AROUND 25,000 DEBT IN CLUDING ALL C/CARDS OF OUR OWN WHICH THE EQUITY IN THE HOUSE CAN JUST COVER.
MY BUSINESS IS NEW AND IS A PARTNERSHIP WITH A FRIEND (6 MONTHS)
AND MY PARTNERS BUSINESS IS STABLE BUT NOT VERY PROFITABLE. WILL THEY BE ABLE TO MAKE US BANKRUPT
SHALL WE SELL OUR HOUSE AND GET RID OF OUR DEBTS B4 THEY GO ON MY IN LAWS OR SELL THE HOUSE AND MOVE IN WITH HIM AND HELP HIM WITH HIS DEBTS OR STAY PUT. ME AND MY PARTNER LIVE WITH OUR 3 YOUNG CHILDREN. OR WE COULD SELL UP AND LIVE WITH MY FATHER WHILE WE FOUND OUR FEET AGAIN
ANY ADVICE WOULD BE GREATFULLY APRECIATED
ME AND MY PARTNER BOTH BOTH OWN OUR OWN BUSINESS AND WE BOTH AGREED TO BE MY FATHER IN LAWS GUARANTOR, HIS BUSINESS IS NOW GONE INTO SERIOUS DEBT AND HE HAS REMORTAGED UP TO THE HILT TO KEEP THE BUSINESS AFLOAT WAITING FOR BETTER TIMES TO COME BUT NOW HAS NO MORE EQUITY IN THE HOUSE TO HELP THE BUSINESS OR HIS OWN PERSONAL DEBTS, HE HAS HAD AN IVA TO SORT OUT HIS CREDIT CARDS BUT HE STILL HAS AROUND 50,000 DEBT WITH A FINANCE COMPANY WHICH HE OWES AND NOW CANNOT PAY! THEY HAVE SAID TO HIM THAT IF HE CANNOT PAY (WHICH HE CANT) THEN WE ARE NEXT ON THE LIST.
WE HAVE AROUND 25,000 DEBT IN CLUDING ALL C/CARDS OF OUR OWN WHICH THE EQUITY IN THE HOUSE CAN JUST COVER.
MY BUSINESS IS NEW AND IS A PARTNERSHIP WITH A FRIEND (6 MONTHS)
AND MY PARTNERS BUSINESS IS STABLE BUT NOT VERY PROFITABLE. WILL THEY BE ABLE TO MAKE US BANKRUPT
SHALL WE SELL OUR HOUSE AND GET RID OF OUR DEBTS B4 THEY GO ON MY IN LAWS OR SELL THE HOUSE AND MOVE IN WITH HIM AND HELP HIM WITH HIS DEBTS OR STAY PUT. ME AND MY PARTNER LIVE WITH OUR 3 YOUNG CHILDREN. OR WE COULD SELL UP AND LIVE WITH MY FATHER WHILE WE FOUND OUR FEET AGAIN
ANY ADVICE WOULD BE GREATFULLY APRECIATED
0
Comments
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Hi don66 - You REALLY need to take some professional advice, as your situation is extremely complicated.
Acting as a 'Guarantor' for your FIL's busines Debts WILL make you fully responsible if his business does fail, or he declares bankruptcy.
You say that he is 'already in an IVA' yet still owes £50k to a Finance Company. This really shouldn't happen as an IVA is, in itself, a form of 'Insolvency' and ALL his debts should be included.
May I suggest that you talk with a Financial Adviser at CAB - www.citizensadvice.org.uk , National Debtline - www.nationaldebtline.co.uk - 0808 808 4000 - or CCCS www.cccs.co.uk - 0800 138 1111. They are ALL charities and will not charge you one penny, yet can give you free, impartial and professional advice.
Good Luck.I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0 -
Can we also ask who organised the IVA? Was it one of the fee paying companies you see on TV?
It amy be worthwhile posting up your own SOA so we can see if there is a way of reducing your debts and possibly saving on some of the interest you are paying.After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91
Dad Gift 6k ¦ Savings & Inv Tst: £2,500
Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0
Total Owed: £2,270 (+6k) 11/08/20110 -
The Problem Which I Only Have Just Found Out Is That He Did Not Include The Finance Companys Debts As The Business Owner Is A Friend And He Relys On Him For Business!!! Cant Believe It.
Can He Get Another 1 Done.
Hes Been Hiding Stuff From Us But Has Now Just Told Us Everything0 -
The Problem Which I Only Have Just Found Out Is That He Did Not Include The Finance Companys Debts As The Business Owner Is A Friend And He Relys On Him For Business!!! Cant Believe It.
I am not 100% sure of the 'friend's' legal status. Certainly in Bankruptcy it would not matter if all debts had been declared at the time of bankruptcy as, with certain exceptions, they would all have been included in the Bankruptcy Order.
My own feeling is that he could be percieved as having given this 'friend' preferential status - in bankruptcy that could result in the imposition of a BRO on the 'debtor' - and punitive steps against the creditor in respect of any monies arising from the bankrupt's estate. He needs to take professional advice on this as soon as possible.
Anyway - some 'friend' that has turned out to be. :huh: :huh: :huh:I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0
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