Funding Circle personal guarantee

[Deleted User]

Court sounds like an expensive route to take, with a limited chance of success.

Especially when you have a free option which is more customer friendly.

Keep_pedalling

Deleted_User wrote: »

Court sounds like an expensive route to take, with a limited chance of success.

Especially when you have a free option which is more customer friendly.

These are commercial loans to companies not personal loans, so I don’t think that option is available to this poster.

foxy-stoat

If you don't pay the debt then expect CCJ against you, credit file trashed for a few years, or 6, ballifs calling to remove from your house or a car, maybe a charge put on your property.

You WILL pay at some point though.

Let us know how you get on.

foxy-stoat

Kelly156 wrote: »

I am about to go to court as funding circle do not adhere to any of their collection processes they say they offer.

I would be interested in speaking to anyone who has had a loan from funding circle via an agent or directly from them.

If anyone is thinking of taking a funding circle loan avoid at all costs...

Maybe start your own thread, but what is their collection processes, direct debit or standing order maybe, have you defaulted on your loan?

Bermonia

Kelly156 - you will need to supply considerably more information if your looking for advice, as suggested may be worth starting your own thread and laying out the circumstances there.

RD2020

Hi all,
We are in deep do do with FC - long story short, we borrowed 50K, paid back a years worth and then the business failed. PG has been invoked, but they have added nealy 20K to the loan amount and won't freeze interest on now 70K @18.9 %... we will never be able to pay this off and there is no mercy from them. My question is to this forum: If we go bankrupt (both me and the wife), will this debt go away. I have read that as FC is a peer to peer lending group, that the debt is owed to individuals and that this means bankrupcy wont clear the debt. Need to know this before going any further with anything.
All replies gratefully recieved - any insolvency peeps out there?
Many thanks in advance. BTW, we know how banrupcy works etc - just not Funding Circle

sourcrates

RD2020 said:

Hi all,
We are in deep do do with FC - long story short, we borrowed 50K, paid back a years worth and then the business failed. PG has been invoked, but they have added nealy 20K to the loan amount and won't freeze interest on now 70K @18.9 %... we will never be able to pay this off and there is no mercy from them. My question is to this forum: If we go bankrupt (both me and the wife), will this debt go away. I have read that as FC is a peer to peer lending group, that the debt is owed to individuals and that this means bankrupcy wont clear the debt. Need to know this before going any further with anything.
All replies gratefully recieved - any insolvency peeps out there?
Many thanks in advance. BTW, we know how banrupcy works etc - just not Funding Circle

This is from the Funding Circle collections process page on their website -

https://www.fundingcircle.com/blog/2018/08/collections-process-works/

3. Bankruptcy

Sometimes bankruptcy is the right option for an individual. When a guarantor is made bankrupt, we will always try to get an insolvency practitioner from our panel appointed as Trustee in Bankruptcy (i.e. the person who takes controls of the bankrupt’s assets and carries out various investigations). However, sometimes this is not possible. When an individual enters bankruptcy it is very rare that there will be a material recovery for investors.

Bankrupcy is an all encompassing solution, only tax debts and certain court fines are excluded.

MinuteNoodles

RD2020 said:

My question is to this forum: If we go bankrupt (both me and the wife), will this debt go away

Only if you have no assets. If you go bankrupt and you have any assets such as a car worth over £1000, a pension, any savings, any equity in your home and if your income is above a certain level (depends on circumstances) then the OR can take those assets plus any income above the amount they state you need to live on to pay off not only the Funding Circle debt but everyone you owe money to so even if you only owe say £1000 to FC but £5000 in total to everyone from credit card companies to your water, gas and electric then they'll seize assets sufficient enough to cover all of that, not just £1000.

PaulandA

MinuteNoodles said:

RD2020 said:

My question is to this forum: If we go bankrupt (both me and the wife), will this debt go away

Only if you have no assets. If you go bankrupt and you have any assets such as a car worth over £1000, a pension, any savings, any equity in your home and if your income is above a certain level (depends on circumstances) then the OR can take those assets plus any income above the amount they state you need to live on to pay off not only the Funding Circle debt but everyone you owe money to so even if you only owe say £1000 to FC but £5000 in total to everyone from credit card companies to your water, gas and electric then they'll seize assets sufficient enough to cover all of that, not just £1000.

well this its true to a degree but if you need a car for work  they won't take that , also with your house they are not likely to make you homeless more likely to put a 'charge on the house' in most cases your mortgage company owns your house as the first charge so make sure you keep paying it. Most types of pension schemes are classed as approved. If your pension is approved, your pension funds won't be counted as an asset in the bankruptcy. If your pension scheme isn't approved, the trustee can claim the funds in it as a lump sum of property, although you may have options for protecting some or all of it.
Its true that all your debts have to be included you can be selective in bankruptcy.  

The only point I would add here is that this is risky for FC and defiantly a last option for them. 

DCFC79

PaulandA said:

MinuteNoodles said:

RD2020 said:

My question is to this forum: If we go bankrupt (both me and the wife), will this debt go away

Only if you have no assets. If you go bankrupt and you have any assets such as a car worth over £1000, a pension, any savings, any equity in your home and if your income is above a certain level (depends on circumstances) then the OR can take those assets plus any income above the amount they state you need to live on to pay off not only the Funding Circle debt but everyone you owe money to so even if you only owe say £1000 to FC but £5000 in total to everyone from credit card companies to your water, gas and electric then they'll seize assets sufficient enough to cover all of that, not just £1000.

well this its true to a degree but if you need a car for work  they won't take that , also with your house they are not likely to make you homeless more likely to put a 'charge on the house' in most cases your mortgage company owns your house as the first charge so make sure you keep paying it. Most types of pension schemes are classed as approved. If your pension is approved, your pension funds won't be counted as an asset in the bankruptcy. If your pension scheme isn't approved, the trustee can claim the funds in it as a lump sum of property, although you may have options for protecting some or all of it.
Its true that all your debts have to be included you can be selective in bankruptcy.  

The only point I would add here is that this is risky for FC and defiantly a last option for them. 

You know the thread is from last year.