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Loan garantor problems

chas77
chas77 Posts: 3 Newbie
Hi all,

A quick question. I have a loan in which my father is garuantor. Recently we have fallen out and now he wants me to sell the car and pay the loan off as he refuses to be garuantor.
Does anyone know his rights to this request. In short I cant get the credit to get my own loan to pay this off and also i dont think the sale of the car will leave me with enough equity to clear the amount needed to pay the loan off.

Not a good situation! BTW I have never missed a payment on the loan.

Any advice would be helpful

thanks all.
«1

Comments

  • DGJsaver
    DGJsaver Posts: 2,777 Forumite
    just keep paying the loan , even bettre default the loan , then he will have to pay it........thats a joke.... ;-0
  • immoral_angeluk
    immoral_angeluk Posts: 24,506 Forumite
    10,000 Posts Combo Breaker
    As far as I'm aware it's tough. If he's the guarantor he's the guarantor and if he agreed and signed it at the time then he's liable if you don't pay. Is it hire purchase or a bog standard loan? If it's HP you can't sell it without the company's permission.
    Total 'Failed Business' Debt £29,043
    Que sera, sera. <3
  • paulmcerlean
    paulmcerlean Posts: 831 Forumite
    Also if it is HP - have you paid half of the amount owing?

    If so, you can terminate the contract and arrange for the car to be picked up. It may be your best bet if he really wants you to sell the car and is putting pressure on you - and the equity is not enough to cover a sale.

    Does however leave you without a car and an inability to get one if you need him to co-sign.
  • immoral_angeluk
    immoral_angeluk Posts: 24,506 Forumite
    10,000 Posts Combo Breaker
    How serious is the fall out with your dad? Is it something that's likely to blow over?
    Total 'Failed Business' Debt £29,043
    Que sera, sera. <3
  • chas77
    chas77 Posts: 3 Newbie
    Not sure if it will blow over. So I cant answer that one.
  • DGJsaver
    DGJsaver Posts: 2,777 Forumite
    how about trying to answer any of the other questions ?
  • chas77
    chas77 Posts: 3 Newbie
    sorry, its an HP agreement, Havent paid half yet... so thats currently not an option either :(
  • make it up t him
  • immoral_angeluk
    immoral_angeluk Posts: 24,506 Forumite
    10,000 Posts Combo Breaker
    If it's HP then the car isn't yours to sell. You can sell it but you have to have the prior agreement of the company first and it's highly unlikely unless you can show that you'd be able to pay off the debt in full with the proceeds. Your father can't force you to sell the car. Being a guarantor only makes him liable if you default, it doesn't give him any rights to the car unless stated in your agreement, as far as I'm aware.
    Total 'Failed Business' Debt £29,043
    Que sera, sera. <3
  • LeeSouthEast
    LeeSouthEast Posts: 3,822 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    If you've never missed a payment and are unlikely to, it's not really an issue.
    Starting Debt: ~£20,000 01/01/2009. DFD: 20/11/2009 :j
    Do something amazing. GIVE BLOOD.
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