Considering BR

hanes

Ok so I attended the CAB and he did all the letterheads for me in terms of token payments to all companies so that was a relief and have now sent them off.

He advised me something I found strange however - I stupidly have a loan guarantored? by a family member

He said I should stop paying this and tell my family member to cancel the payment and card against it.

Would this of been sound advice as Im a bit worried of what it may mean for my family member

I know I cannot pay one debt above the other but surely this cannot happen?

PippaGirl_2

Unfortunately as hopefully CAB would have explained, if you do go BR that the creditor will pursue that debt from your guarantor and seek repayment from them. I don't know why the CAB have told you not to pay token payments to them as well at the moment though, maybe feeling that as they will chase the guarantor soon anyway they may as well start that straight away. Most people who owe close family or friends money may well pay that family member back in the future after their BR has ended and they are back on their feet financially. Unfortunately when being a guarantor for someone it is a risk they have chosen to take.

hanes

PippaGirl wrote: »

Unfortunately as hopefully CAB would have explained, if you do go BR that the creditor will pursue that debt from your guarantor and seek repayment from them. I don't know why the CAB have told you not to pay token payments to them as well at the moment though, maybe feeling that as they will chase the guarantor soon anyway they may as well start that straight away. Most people who owe close family or friends money may well pay that family member back in the future after their BR has ended and they are back on their feet financially. Unfortunately when being a guarantor for someone it is a risk they have chosen to take.

Yes he did do letterheads for me to issue my lenders with token payments and I have sent these off.

What do I do regards this debt now? If I continue to pay it looks as though I am favouring one creditor over the others?

Plus if I do pay it it is likely to take 3 years at the current interest on the account to payback

hanes

Ok so Im non the wiser on this the loan was with amigo (ahhh) and you can hazard a guess what a mess it is. They ask that the guarantor be a homeowner - I believe they cannot claim any financial liability against the house? it is merely for credit worthiness?

What can I do in this case?

PippaGirl_2

Hanes, have you spoken to your guarantor about the loan? Are they able to continue paying the loan for you when you go BR? If they can't/won't, I am afraid they will be chased for the debt once you are BR. You will not be able to pay the loan yourself once you are BR.