Am I liable for this loan which I guaranteed ?

Get expert opinion. This is the place for new questions to be posted.
7 posts Page 1 of 1
User avatar
lynn518
Posts: 1
by lynn518 » Tue Oct 17, 2017 1:22 am
My friend has an Amigo loan. I am guarantor. She went into IVA but continues to pay Amigo who have now come to me saying they cannot accept her payments even though they do because she does it online because she is IVA. how can they say this if they wouldn't let her go iva because she had a guarantor? does this mean I am now liable for the debt even thoug she comes out of IVA in March?
User avatar
Foggy
Forum Expert
Posts: 24127
Contact
by Foggy » Tue Oct 17, 2017 7:20 am
If she defaults on the loan -- basically -- it becomes your loan and you have to make payments. If she is continuing to make the full payment, despite the IVA ( which she should not be doing) then Amigo should be happy. But they are, if they are in the IVA, which they should be, not allowed to accept the payments from her ..... she could pay you and you pass this on to Amigo. Still not right, but could work.
User avatar
Lisa Thomas
Industry Expert
Posts: 6026
Contact
by Lisa Thomas » Tue Oct 17, 2017 8:26 am
You need to be prepared for this loan to be called in against you in full.

If that happens you will then have a subrogated claim as a creditor in the IVA for the sum that you paid.
User avatar
Michael Peoples
Industry Expert
Posts: 15188
Contact
by Michael Peoples » Tue Oct 17, 2017 8:57 am
I have seen some instances where other creditors have allowed a guarantor loan to be paid. However this case seems very odd as if this was the case then why would Amigo have a problem? The other issue would be how can your friend afford to repay this loan and an IVA?
User avatar
Prolism
Posts: 2
by Prolism » Fri Nov 03, 2017 3:40 am
What an odd situation. As others like Foggy have suggested, and experts agree (Source), if she defaults on the loan then it's pretty clearly yours to deal with now . What I don't quite get is how or why they'd have an issue if she's still managing to make / match her required payments. Any updates or extra info on this one? Really curious to hear how this pans out.
User avatar
Foggy
Forum Expert
Posts: 24127
Contact
by Foggy » Fri Nov 03, 2017 7:45 am
Prolism wrote:
What an odd situation. As others like Foggy have suggested, and experts agree (Source), if she defaults on the loan then it's pretty clearly yours to deal with now . What I don't quite get is how or why they'd have an issue if she's still managing to make / match her required payments. Any updates or extra info on this one? Really curious to hear how this pans out.


Semantics really ---- they would be happy to get the money, but are also bouind by the terms of the IVA. Those terms forbid a creditors being paid by the debtor in favour over other creditors .... so the debtor paying them is against the agreement. However, the guarantor paying them is not. To keep things ship shape, the guarantor could become a creditor in his / her own right. In reality though they will pay Amigo and the debtor could come to some arrangement with them privately -- which we will not go into.
User avatar
Lisa Thomas
Industry Expert
Posts: 6026
Contact
by Lisa Thomas » Fri Nov 03, 2017 9:22 am
Why would you want to wait years to potentially get a few pence in the pound from an insolvent debtor when you can pursue the guarantor for the full balance and possibly get paid more money quicker.
7 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: Google [Bot] and 24 guests