I signed as a guarantor for my brother’s business loan and now he has told me the company is going bust. What are my options?
Being a guarantor for a loan makes that loan as I am sure you are aware, your responsibility. Should the company no longer pay the monthly payments, the bank/lender will expect you to pay those payments.
Can your brother help pay the payments?
Has he spoke to the bank/lender about this?
Does the business have any assets it can sell to cover the debt?
How was the company structured, sole trader, LTD?
Do you have any other accounts or debts yourself?
Can you afford to pay the monthly payments on your own if you need to?
Sorry for all the questions, but it does help me in advising you.
It may be you just pay the monthly payments until your brother can pay them, or you both make the payments.
In being a guarantor, an affordability check should have been done to insure you could afford to repay the loan if the company defaulted on the loan. I know that doesn’t help, but the lender should know and checked that you were good for the payments.
Let me know, and I can advise further.