Against my better judgement last year I went guarantor on a loan for my sister. Although she agreed to pay the monthly amount she has defaulted several times and its gone from my bank instead. As im finacially responsible for this debt and currently in process of applying for bankruptcy what happens to this loan?
Good question. I suppose that you are legally bound to make the repayments and the loan company would chase you if your sister stopped paying so you should put it on your form.
One of the experts should be able to confirm if it can be included in your BR. I would hope it could otherwise if your sister continues to default you could be BR and still liable to pay for the loan.
Technically it is not your debt or responsibility until the loan company calls on your guarantee. You should mention it on your bankruptcy forms but only as a possible unsecured creditor. This will then protect you if they call on your guarantee before you are discharged. However, if they call on your guarantee after your discharge you would then become liable.
Family Loan
Posted - 05 June 2009 : 13:53:44
