what happens if a relative can't repay a loan?

webbhost

Hi all,

My brother (lives in the same house) want's to get a loan for a new bike, and is looking at a loan (he needs about £4000 total for a new bike).

However I'm a bit uncomfortable about the idea because he has had a credit card before which the parents ended up paying off when he decided he didn't have the money.

What would happen in the event that he could not repay the loan?

Could it result in bailiffs, and if it "did", what can they take from the house?

Would they be able to take my possessions because they are in the same house, or can they only take stuff that belongs to him?

Also, what would happen if bailiffs said they thought something belonged to him, but it did belong to me, would I need receipts for everything?

Thanks for info, would like to know what sorta situation he's potentially putting the rest of us into before I decide to help him find a loan that would be suitable, or I could be kicking myself up the darker region..:D

Apples2

Bailiffs. Are only appointed through the courts, don't confuse them with debt collectors who will claim they can take stuff.

Debt is personal, they can only take your brothers adolescent tat. Bear in mind by the time the bailiffs turn up you would have all been well used to debt collectors and their empty threats at the door, on the phone etc.

You don't say what your brothers credit file is like, it is possible that by helping him out last time, you have all ensured he has a great chance of acceptance for a large debt so you have all made things much worse for yourselves.
If you help him out again it will be even worse next time.

If his credit file is shot, he won't get anything other than HP anyway. Perhaps you could let him apply for random loans after searching Google himself?
He will get ripped off by the broker vermin a few times before realising he isn't able to get a loan.

27col

The parents are not doing him any favours by paying off his debts. It just means that he will never learn to take responsibility for his own actions, and the past situation will occur again and again. Especially when he realises that he has only to stop paying to get someone else to bail him out.