Bankrupt Guarantor

[WindWatcher]

Afternoon all,

 

Just a quick question; My fathersigned as my guarantor around 4 years ago (the tenancy agreement was for one year) and he last year went bankrupt. Some arrears have been built and we have agreed to pay them back but he is understandably conscerned. My question is, is he still subject to the agreement if he is now bankrupt? all help appreciated

[MrShed]

I would advise that you post this in a different section of the forum (perhaps the Debt Action Group bit), as this is more specific to backruptcy than tenancies (a guarantor agreement isnt covered by the relevant housing acts, and it simply a basic legal contract).

 

My initial thought is that the bankruptcy removes your liability of existing debts, not liability of contractual obligations, and so I would say that any monies owed that arose AFTER the bankruptcy your father will be liable. However, I am very very far from knowing enough about bankruptcies to state this definitively.

 

I would probably click the "report post" triangle and therefore ask a mod to shift your thread to the most relevant forum.

[saintly_1]

Have moved thread to the Bankruptcy Forum

[WindWatcher]

Right, Hi All, I'm resurrecting this thread as things were OK but the landlord is now demanding I pay faster than I humanly can (I am paying). He is also threatening to "bring the guarantor into this", does anyone know if my dad will still be subject to the guarantor agreement considering he is declared bankrupt? He never had any capital so I was surprised he qualified as a guarantor in the first place...

 

helps always appreciated

[toddle2u]

My initial thoughts were that if the debt has been incurred post bankruptcy he will be liable for it.

 

However, after some research it seems that this is not correct. Although the liability did not in this case, crystalise until after the guarantor's discharge, the liability would be classed as a 'Contingent' liability as of the date of the guarantor's bankruptcy and would therefore have fallen into his bankrupt estate in accordance with Section 382 of the Act. Technically, the guarantor should have declared the liability on his bankruptcy paperwork, but the Law would determine the matter only in accordance with the Insolvency legislation.

 

So it would semm he is not liable

[WindWatcher]

Thanks toddle2u,

 

Sounds like you know you're stuff, the arrears were built slowly some prior to the bankruptcy and some post, not sure if that makes a difference?

[toddle2u]

Either way he's not liable. Not sure if it's worth pointing this out to the LL at this stage. He thinks has a guarantor to fall back on it's giving him some 'comfort' with the fact that it's there and it's something he can use against you. Keep paying what you can towards the arrears.