guarantor loan HELP

bearcat16

Unfortunately, if you or the guarantor has assets (such as a house) then those assets ARE at risk, no matter what someone told you. The loan may not be secured against the house, but the house (and any other assets) are not protected.

When pursuing an unsecured debt, a creditor has the option to petition for the debtors bankruptcy, and if successful then all assets are at risk.

In reality, it's highly unlikely that a house would be reposessed and sold to settle a relatively small debt like £6k, but the threat of it will give the creditor leverage.

Westminster

Absolutely the house is at risk

ViolaLass

lowie1978 wrote: »

wouldnt of been an issue and i would of paid the full amount monthly without an issue .. wasnt expecting my father to get cancer and come out of work .. so its been all hands on deck so to speak

That's the point, these things happen. That's why it would have been better to get your mother to take a loan out for you in her name (at a much lower rate).

Does your mother work? Are your parents claiming all the benefits to which they are entitled? Are you?

lowie1978

mother has gone from full time right down to part time hours to help my father. yes all benefits are now been claimed .

its not that im trying to get out of paying this loan thats never been the case . but the creditor seems to not want to help with a reduced payment plan anymore i suppose thats there choice at the end of the day . was just after some advice on options that are available that people may no about .

lowie1978

is there no way you can apply to a court to have the interest stopped or something like that ???

MEM62

I appreciate that your mother's financial circumstances have changed but what has changed in your circumstances that prevents you from making payments?

Alderbank

In summary, when you, mum and dad were all working you could make the payments OK and had done for 2+ years. However mum and dad's income has now dropped and you are having to help much more with the family outgoings.

Amigo don't sound to be much of a friend in need, but extending their loan would cost you more in the long run so you should look at other options instead:

• Is mum claiming carer's allowance? This can be fast tracked in your circumstances.
• What about reducing other bills? Does your mum have a mortgage? They might agree to a payment holiday. Similarly with car loans or personal bank loans.
• Have you spoken to Macmillan? They are good with financial advice and support
• If your father is employed he might be due a death-in-service payment. If he asks they might be willing to pay it early to reduce hardship. Exactly this happened to my sister-in-law. She had stage 4 lung cancer and wanted to pay off her mortgage before she died. Because of her terminal illness her employer was willing to advance payment of her death-in-service benefit

MEM62

BrightonsBest wrote: »

I think the OP is now helping out her Mum financially rather than paying the loan.

OP's post does read that way, which is why is asked the question.

If she is, then by helping her mother she places her mother in a position where her mother has to cover the loan as guarantor because OP cannot make payments - because she is helping her mother. As case of 'sorry mum you'll have to pick up my loan payments. I can't afford them because I am giving you money.

As you can see it's complete farce.

If this is the situation then the OP simply has to accept that she is not in a position to assist her parents financially and go back to making the loan repayments. Thereby relieving her mother of the onerous position she is currently in a guarantor.