Guarantor debt recovery!
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Mr_Ted
Posts: 1,067 Forumite
NO GUESS WORK ON THIS PLEASE!
Someone i know went guarantor for a relative on a pub but that person didnt pay the rent so it has reached the stage of debt recovery amounting to 6 figures.
It would appear that no attempt has been made to recover debt from the relative and the guarantor has been made totally responsible, this is understood!
However, the guarantor had several properties that were rented out that were in joint names with his wife and the wife has been named on the writ for recovery of the debt?
SURELY only the guarantors share of the joint ownership should be recoverable to pay the debt?
Also the guarantor is in bankruptcy, yet bailiffs are STILL trying to recover property to finance the debt, SURELY this is wrong?
TIA for any professional reply.
Someone i know went guarantor for a relative on a pub but that person didnt pay the rent so it has reached the stage of debt recovery amounting to 6 figures.
It would appear that no attempt has been made to recover debt from the relative and the guarantor has been made totally responsible, this is understood!
However, the guarantor had several properties that were rented out that were in joint names with his wife and the wife has been named on the writ for recovery of the debt?
SURELY only the guarantors share of the joint ownership should be recoverable to pay the debt?
Also the guarantor is in bankruptcy, yet bailiffs are STILL trying to recover property to finance the debt, SURELY this is wrong?
TIA for any professional reply.
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Comments
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I can sympathise as this is happening to my wife in a similar way, trying to get help is like nailing custard to the ceiling as nobody wants to know. (see my post further down page)
My advise would be to attend the hearing if going bankrupt and explain to the judge as trying to talk to companies is a waste of time as the creditor will continue regardless.
At least at the hearing the judge will decide 1 way or the other.0 -
Hi,
Only the guarantor(s) who signed the document can be held liable under it.
If the guarantor is now bankrupt and the guarantor document was signed before becoming bankrupt then it is a bankruptcy debt and therefore written off.
The creditor has no claim against a non guarantors share of a jointly owned property, but can force a sale (ultimately) or attempt to bring a charge against the GUARANTORS share of any property. If a jointly owned property was sold then the non guarantor would have their share of the equity returned to them.
However, in this case, the Official Receiver is now the owner of any assets that the guarantor has and as that creditor is included within the bankruptcy proceedings, they can no longer claim against the property.
Presuming that the bailiffs do not have a valid, signed, Control of goods order, then they have no right to pursue this bankruptcy debt - Even if they do have one, it is very rare that such a 'security' would be attempted to be enforced - and can be challenged. The 'security' would be limited to the 2nd hand value of goods seized - not a security on bricks and mortar.
DDDebt Doctor, Debt caseworker, Citizens' Advice Bureau .
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***0 -
Some facts for you, the kind of recovery action undertaken by the creditor will be determined by what is written in the rental agreement, the oh so small, small print, that no one ever reads until things such as this happen,
Is your friend actually bankrupt, or in the process of going bankrupt ?
Because writs can be enforced up to the minute the case is decided.
Once bankrupt they will have no remedy against him.
Edit : cross posted with DD.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-letter0
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