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13/08/2011 7:00 am
Hi there,
My mum acted as a guarantor 2 years ago for a rather sizeable loan for my brother who is now in the process of setting up a trust deed. She received a letter from the bank yesterday to say that the payment on the loan was late and she is now worried sick. Since acting as guarantor she has been diagnosed with lung cancer and had half her right lung removed. As a result she has had to stop working and is now on disability benefits. Are the bank likely to accept the trust deed or will they hold her liable for the debt under the circumstances?
Thanks
13/08/2011 9:31 am
Hi lorrriiiii
Unfortunately if she acted as guarantor, then the bank can and will pursue her for the debt. In my experience, they will seek recovery of the debt irrespective of health or other issues.
It must be a worrying time, but I would strongly advise she seeks advice on matters.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
15/08/2011 2:11 pm
If this debt is a large proportion of your brother's debts it might be worth him thinking again before going ahead with a trust deed. As the debt would still stand against your mother the benefit of the trust deed may be small and he may prefer to look at an option which doesn't leave her in this situation given her health issues.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
15/08/2011 3:40 pm
Was your brothers loan for anything in particular that might still hold some value? I think he would need to consider what affect him signing a TD would have on your mum. I don't imagine that his trustee would allow him to make a significant payment every month to your mum to cover her costs. He will only be able to justify essential costs together the minimal costs required for living, everything else goes to the trust deed.
SkintAlly
