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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?



  • 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
    angie85 Posts: 18 Forumite
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    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
    sourcrates Posts: 29,171 Ambassador
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    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.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Minkym00
    Minkym00 Posts: 774 Forumite
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    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
    Sonic101 Posts: 151 Forumite
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    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
    angie85 Posts: 18 Forumite
    First Post First Anniversary
    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 
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