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Bankruptcy & Guarantor Loans

beautifullyhuman
beautifullyhuman Posts: 6 Forumite
in Bankruptcy & living with it
Hello.

I am requesting that my house is repossessed on Friday and after that I'm filing for bankruptcy.

Does anyone have any information regarding Guarantor Loans?
I have one loan with Amigo which has never defaulted. Obviously if I am going bankrupt I expect this to be in the BO but how does this effect my guarantor?
Will they be expected to foot the bill even though I am bankrupt?

Any advice would be appreciated.

Thanks.

Comments

  • dojoman
    dojoman Posts: 12,027 Forumite
    If you go BR the guarantor will become liable for the debt.
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    That is the point of a guarantor. If the main signatory does not pay, goes bankrupt etc, the guarantor is liable and can be chased for payment.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • beautifullyhuman
    beautifullyhuman Posts: 6 Forumite
    That's what I thought, but will the Assessor take these payments into consideration and let me still make the payments when going BR as I really do not want my guarantor paying for my mistakes?
  • molerat
    molerat Posts: 35,923 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I very much doubt that would be legal, all debts with few exceptions should be dealt with equally. The reason for offering a guarantor loan is because they feel there is a fair chance the debtor will not pay up so they hedge their bets by making someone else liable. The only way to not stiff your guarantor is to continue to pay the loan on time.
  • fermi
    fermi Posts: 40,542 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker Rampant Recycler
    beautifullyhuman wrote: »
    That's what I thought, but will the Assessor take these payments into consideration and let me still make the payments when going BR as I really do not want my guarantor paying for my mistakes?

    Nope. The examiner will not allow you that in your budget.
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • spacey2012
    spacey2012 Posts: 5,836 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    FERMI is the undisputed number 1 board expert in this field , so read carefully what they write !
    Be happy...;)
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