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Guarantored Loan with FLM! help!
HI, Can any one help please?
I took out a loan last year with FLM loans (I wish I had known of these forums then!!) that my friend guarantored for me (the only way they would accept my application.) I have been unable to pay the last two months (due to changes in circumstances) and they have taken payment from my guarantor's (friend) bank account. She luckily accepted this and has been understanding about it. My circumstances are not likely to change in the near future so she was happy to let FLM take the loan payments (I know she is a great and very understanding friend). But now my friend has been told that her job will be finished next month and as she has other debts and an unforseen personal circumstance she has told me that she is going to go bankrupt in the next two or three months (once she has saved up the fees, sorted somewhere to rent etc).
What we both don't know is what happens to loan? Is it classed as her debt and if so could it be included in her bankruptcy? Or will the debt come back to me and can FLM take me to court (CCJ etc?). She said she will not be able to pay from the next payment (which is due at the end of the month) so there will be a couple of months where FLM will not recieve payment before she goes bankrupt.
The main answer we need to know is the debt hers and go in her bankruptcy or is the debt still mine so they will start chasing me once the arrears start?
Many thanks to anyone who can help!!! Panicking now!!!!
I took out a loan last year with FLM loans (I wish I had known of these forums then!!) that my friend guarantored for me (the only way they would accept my application.) I have been unable to pay the last two months (due to changes in circumstances) and they have taken payment from my guarantor's (friend) bank account. She luckily accepted this and has been understanding about it. My circumstances are not likely to change in the near future so she was happy to let FLM take the loan payments (I know she is a great and very understanding friend). But now my friend has been told that her job will be finished next month and as she has other debts and an unforseen personal circumstance she has told me that she is going to go bankrupt in the next two or three months (once she has saved up the fees, sorted somewhere to rent etc).
What we both don't know is what happens to loan? Is it classed as her debt and if so could it be included in her bankruptcy? Or will the debt come back to me and can FLM take me to court (CCJ etc?). She said she will not be able to pay from the next payment (which is due at the end of the month) so there will be a couple of months where FLM will not recieve payment before she goes bankrupt.
The main answer we need to know is the debt hers and go in her bankruptcy or is the debt still mine so they will start chasing me once the arrears start?
Many thanks to anyone who can help!!! Panicking now!!!!
0
Comments
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They can persue both of you. If you friend goes bankrupt then the debt is yours alone.0
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