If it were left out of the original.creditors iva though as Paul mentioned, surely if the guarantor failed to pay then the creditor would be able to chase the original debtor again.
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The debt will have to go into the IVA even in guarantor carries on paying, it could be excluded with the other creditors agreement but will be a contingent liability, e;g a liability if the guarantor fails to pay.
I have guarantored a loan for my son but the payments profile is only registered against him rather than both of us, unlike a joint loan. So the only damage to a guarantors credit rating would come from court action by the creditor against the guarantor, in my opinion
The person who does guarantee the loan couldn't become a creditor as they are legally liable for that loan and thus if the initial applicant defaults it then becomes the sole responsbility of said person. I think the only way anything is muddy is if said 2 people are already associated financially without this loan.
The road is 72months long starting September 2010.
