Amigo Loans - death of Guarantor

davidmcn

SuperAllyB wrote: »

If the guarantee doesn't die with him and the borrower is aware then she will undoubtedly default as she doesn't get on with either the executor or any of the likely beneficiaries.

In which case the executors would be entitled to be reimbursed by the borrower for any sums paid out from the estate.

Brock_and_Roll

Thrugelmir wrote: »

Most likely scenario is that the estate will have a contingent liability. That will remain unless the borrower substitutes the guarantor or is able to continue the agreement without the need for one. All of which may well hold up distribution of the estate.

This is correct. Theoretically the maximum contingent liability is not even known as with costs, late payment fees etc the liability falling on the Estate may be even greater than the current loan balance. Of course the Executors potential open themselves up to personal and criminal liability if they distribute assets without extinguishing the liabilities.

However, as sensible Executor should realise the assets of the Estate as required by law and should be able to make a distribution whilst setting aside a sensible sum until such time as the loan is repaid in full. How long was/is the loan?

My late father had a large amount of both assets and debts and 4 years later I am still dealing with the matter - but this case does not sound so complicated.

System

Guarantor loans are not a new thing so there must be a method of dealing with this situation. A solicitor is the best option for advice

InsideInsurance

!!!!!! wrote: »

Guarantor loans are not a new thing so there must be a method of dealing with this situation. A solicitor is the best option for advice

Depending on the size of the debt, if only £100 is outstanding then its not worth paying a solicitor £250 to find out what you need to do.

jonesMUFCforever

A quick interview with a solicitor will not cost £250.
Amigo do loans up to a max of £5000.


We do not know the amount of the loan or whether the guarantor has been asked to pay anything .....yet.

shop-to-drop

I paid £300 a couple of months ago for a one hour appointment with a solicitor.

jonesMUFCforever

shop-to-drop wrote: »

I paid £300 a couple of months ago for a one hour appointment with a solicitor.

Did you have a problem with an Amigo loan too?
If not its not relevant - £300 an hour could just as easily be charged at £5 per minute - it will not take long to go through the document.

SuperAllyB

Thanks for all the replies.

The loan appears to be for the full £5K and as far as we know the borrower hasn't missed any payments yet.

Going to refer to a solicitor about other complications anyway so will add it to the list lol

InsideInsurance

jonesMUFCforever wrote: »

Did you have a problem with an Amigo loan too?
If not its not relevant - £300 an hour could just as easily be charged at £5 per minute - it will not take long to go through the document.

Whilst £300 per hour may equate to £5 a minute most solicitors do not bill by the minute and unless part of a larger engagement then they also typically have a minimum fee

CKhalvashi

InsideInsurance wrote: »

Whilst £300 per hour may equate to £5 a minute most solicitors do not bill by the minute and unless part of a larger engagement then they also typically have a minimum fee

The firm we used to draw the original contracts charged every 6 minutes, with minimum one hour.

I don't know if this is industry standard, or firm specific.