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Scottish Trust Deed Forum
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Topic starter
04/04/2013 8:47 pm
I am in the process of setting up a trust deed.
I have a loan which has about £4,500 left on in to pay. However I have a guarantor on it.
I've been told they may pursue my guarantor for the loan payments if I don't pay.
I would have thought if they decline the trust deed but most of my creditors accept they can't pursue anyone for the debt as it is protected?
Can anyone advise or point me in the right direction.
Cheers
W
04/04/2013 9:17 pm
They can still pursue the guarantor just like they could pursue a 2nd person if you had joint debts and they didnt go into the trust deed.
Paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
04/04/2013 9:24 pm
Unfortunately the party that signed the gaurantee may definately be pursued for the debt they have guaranteed. Think of it like a joint debt in effect. If mr and mrs smith have a joint debt. Mr signs a TD and is no longer responsible for making payments to the loan, nor can he be pursued for it. The creditor although taking part in his TD in order to receive a dividend, just the same as all the other creditors, may pursue that joint debt holder (or in this case the guarantor) until such time as hey receive 100% of there debt back for either or both party.
Rob is not currently posting in the Trust-Deed.co.uk forum.
04/04/2013 10:12 pm
Hi wild86.
It's you that's protected, not the guarantor.
This is part of the reason the lender chose to lend, and for your guarantor it's the risk that they took when they guaranteed your loan.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
04/04/2013 10:20 pm
They can still pursue the guarantor just like they could pursue a 2nd person if you had joint debts and they didnt go into the trust deed.
Paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
05/04/2013 12:09 am
Hmm spooky repeating myself post!!!
Paul
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
05/04/2013 12:55 pm
It's just an echo, paul.
As an aside, it is worth mentioning that if the guarantor pays off the loan then they can stand in place of that creditor and claim a dividend in the trust deed - so at least they could get something back.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
