guarantor-loan please help!!

LegacyUser

hi guys, i really need help, regular poster here but going incognito, Basically a few years back my mother went guarantor on a loan for my brother, to the sum of about €3000 for what she and we thought he would use for his family.
But it turns out he wasted the money on a car (he eventually crashed) and numerous other selfish things. Then we eventually decided that the pain he brought into our lives was too much for myself,my mum and two sisters. He didnt want to have anything to do with us so dont talk anymore and ignore each other on the street. Now we've just found out that he hasnt repaid a cent of his loan and the bank are bringing my mother, the guarantor, to court for the money.

Currently as a family we have nothing, my dad left a few years back so its been my mum who held us together, we dont have any money and are struggling to make ends meet. Why are'nt the bank asking for the money back off my brother?! is there anything i can do to save my mum?! some advice would be extremely helpful as my sisters are young so its only me and mum to deal with it.

We barely survive every week and if we had to pay back his loan it would cripple us and we'd be torn apart with the very real prospect of becoming homeless . The emotional damage is overwhelming.I dont know what to do, or even if theres anything i can do, talkin to my brother and asking him to deal with it is not an option,i know him, he doesnt care whats happening to us now, and i would be threatened verbally and physically if i got angry at him and demanded he repay his loan.

I dont know what to do or who to turn to. Is there anyway my mum would'nt have to pay for the money he wasted and p!ssed away?!
This problem keeps me up all night crying for my fragile separated family's future. I dont care for my dad or brother. they can rot in hell or die for all i care but i cant let this happen to my mum and young sisters. i worry so much

any advice would be lifesaving, thank you all

LittleBook

I'm so sorry for your situation. Presumably they have (in their eyes) exhausted the possiblities of getting the loan repaid by your brother and as horrible as it is, by standing as guarantor for your brother's loan, your mother is responsible for repaying it.

I'm surprised the bank are going straight down the legal route rather than trying to negotiate a repayment plan with you. You can't get blood from a stone and my experience with banks is that if you are in contact with them and making some effort (however small) to repay the loan, they will work with you.

The best advice I can give you is to contact Free Legal Aid.

Get every piece of paper together and ask them to help you deal with the bank.

Aside from the loan itself, you and your mother sound like you are under a lot of stress and pressure (how old are you?) and I think it would help if you talked to maybe the Samaritans purely to try to get some support and peace of mind apart from the loan issue.

Best of luck to you all.

Kevin Duffy

Sounds to me like you mother should be pursuing your brother for the money, through her solicitors if needs be.

dublin daz

Sorry to hear about the situation, similar happened a member of my family but with a utility company.

If your mother signed as guarantor then she legally promised to guarantee that loan with the bank. If your brother defaults on the payments then the bank must seek recourse from the guarantor to clear his debt. The bank provided this money on the basis of it being repaid. They cant get payment from your brother so they are now looking for the debt to be paid by the guarantor.

Legally there is not a lot that can be done, its like any other contract. It may seem harsh, but circumstances won't remove the guarantee.

If they seek payment through the Courts you can negotiate with the Judge and pay what your means allow.

FLAC as mentioned above may be able to help via Citizens Advice, but really its legally enforceable if it was a standard guarantee.

LegacyUser

Thanks for the advice, it helps. It just seems crazy to me that they wont seek the money from the person that recieved the loan, but i do understand the legal obligation. BTW im 22 and my older brother is 25. Im not entirely sure of the situation but i think we have one of those free solictors so hopefully something can be done to get the money from my brother through courts. Also sorry for saying it was a bank but i actually think it was a credit union loan, not sure if that makes a difference. I will be seeking emotion support from the samaritans for my mum and sister though. Hopefully we can survive this.

Sound Bite

Your mum needs to go to the bank and suggest a payment plan. If she can come up with a realisic amount per amount and can prove that this is the maximium she can afford to repay then most likely the bank with agree to restructure the loan.

If she can do this is is likely that the bank will be happy to accept it and will not persue her legally.

LegacyUser

Are the bank aware of the situation between your brother and the rest of you?

It may be that they pursued your brother, got absolutely nothing out of him, and so turned to your mother as the next person on the document. They may not be aware of what the situation is - ie that your mother wasn't aware that he wasn't paying them.

I'd make them aware of that to the best of your ability, and then follow the other poster's advice.

ppink

Op if it is a credit union they are usually very understanding and it may be possible to work out a reasonable payment plan and in the meantime your mum could look for legal aid to get the money from your brother.

ravima

Unfortunately, your mother guaranteed the loan. That is what guarantor means. did she get any advice in advance of signing the document? Where did she sign it? Why did she sign it? these and other questions will need to be answered by your mother.

The bottom line is that she guaranteed her son's loan and now that he hasn't paid it or can't pay it, she must.

It is quite simple.

She needs to talk to solicotor or as suggested, credit union.

krd

The situation may not be bad as it seems. The bank may be threatening court but they may not be serious. There's quite a bit of huffing and puffing in debt collection.

Even though your mother was guarantor the loan is probably unsecured. The most she has to lose may be her credit rating. Which isn't fair. But it's not the end of the world.

Lots of people are going through similar problems.