Guarantor 23 June 2021 at 5:53PM in Bankruptcy & living with it 6 replies 281 views

angie85

I was discharged from bankruptcy two years ago and was left with nothing.

I am about to start a new job which requires more travel and a car would be more cost effective. A relative has said they could act as guarantor but first I wanted to check if this would have any implications for them? Ie - they are not then then liable to contribute to other debts that were part of my bankruptcy?

Thanks

GeordieGeorge

Why do you need a guarantor? Can you not instead scrape together a couple of hundred pounds for something with three or four months left to run on the MOT and then save up enough to get something a bit better if it doesn’t make it through this year’s

It seems crazy to not only take on debt but to involve someone else in it rather than buying something that you can afford.

angie85

The new job comes with higher salary so I could easily make the repayments. But without a car I can’t take the job as public transport routes would mean I would not have time to drop my child at school. 

My relative offered this - I did not request this. They are kind and have offfered to help after I’ve looked after their children many times and do their vat and tax returns free of charge. 

The reason I’m asking is I don’t want them to have a black list against their own credit file for being a guarantor - I can guarantee the payments will not be an issue with my higher salary 

sourcrates

Some guarantor lenders pass information on your payment history onto the guarantors credit file.

Now whether this would affect them with regard to your bankruptcy, I don`t think so, but the payment history on the loan would be reported to both of your credit files.

On the whole guarantor loans are a nightmare you should really avoid at all costs, the interest rates can be silly, and variable.

If you miss a payment, that will also reflect on your guarantors credit file, should you have to default for any reason, they will go after the guarantor for payment, with little or no notice.

We have had countless tales of these loans ending badly, of course some complete without any problems, but quite often life gets in the way of that, think very carefully before you commit to this.

Minkym00

Your bankruptcy debts were written off the day you were discharged, so no-one that you have a financial relationship with (i.e. a loan guarantor) can be made paid to pay them.

Sonic101

From what I understand guarantor loans can be a right headache  - sourcrates’ post above reflects what I’ve read, he knows his stuff so I’d take that on board.

I managed to get a reasonable second hand car for £600 - it’s old but got low mileage and had a year’s MOT, something like that might tide you over. 

Alternatively, would the person who’s the possibly guarantor be able to lend you some money directly? 

angie85

Thanks all,

I think that’s probably a better idea if they were to lend me the money rather than going with a guarantor loan.

Appreciate all the feedback