Stepson and being guarantor

Droopyk

Hi all,
Just a question that's concerning me.
My stepson is a guarantor for an Amigo loan for his now ex partner, she's told him today she cant pay her gas bill, £2.5k in arrears, and thinking of going bankrupt.
How does he stand as per the loan? will he still have to pay or can it be included in her proceeding?.
Any advice would be gratefully appreciated.
Thanks

MWT

He will be expected to keep up the payments.

... and it is unlikely that she would be allowed to contribute to those payments in bankruptcy.

This is the risk you take when you agree to act as guarantor for someone...

If the gas is her only problem though then bankruptcy shouldn't be needed as she will be able to work out a payment plan with them as the energy supplier are obliged to do that, but I imagine she may have other problems if she is really thinking about bankruptcy...

Minkym00

As above, the debt will vest in her bankruptcy, but then Amigo will approach him as guarantor to continue with the repayments. 

jennystarpepper

Droopyk said:

Hi all,
Just a question that's concerning me.
My stepson is a guarantor for an Amigo loan for his now ex partner, she's told him today she cant pay her gas bill, £2.5k in arrears, and thinking of going bankrupt.
How does he stand as per the loan? will he still have to pay or can it be included in her proceeding?.
Any advice would be gratefully appreciated.
Thanks

The money advice service says it costs £680 to do this yourself (bankruptcy) , many people 'say' they are going to do this, but never do.  It maybe she is just using this as a scare tactic so he might take over or help with the payments.  Where is she going to get the money to do this?

Get him to ask her if she has contacted someone to help with debts or can he arrange to contact Stepchange with her?  Maybe he needs to give her a gentle push to get help.  Money problems might be genuine, but she might not be helping herself and is looking for him to take over payments.