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Helen Hill
Helen Hill, Lawyer
Category: Law
Satisfied Customers: 373
Experience:  LLB Law, Licensed Conveyancer and Probate Practitioner, Fellow of CILEx, Trust and Estates Practitioner (STEP)
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I am a guarantor for an amingo loan the borrower could not

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i am a guarantor for an amingo loan the borrower could not afford to pay and they have accepted reduced payments from him and they informed me that my agreement as guarantor will be extended also without my agreement can i do anything
JA: Where are you? It matters because laws vary by location.
Customer: coventry
JA: What steps have you taken so far?
Customer: none at the moment
JA: Anything else you want the Lawyer to know before I connect you?
Customer: no

Thank you for your question. I am very sorry to hear about your circumstances.

Acting as a guarantor for a loan, and being a party to the original loan agreement, means that you have agreed to make any repayments if the borrower defaults on the agreement. This will run for the duration of the loan and until it has been paid in full. If the loan period has been extended as the borrower has agreed to make smaller payments this means that the period you are acting as a guarantor will be extended. This is probably preferable to them enforcing the original terms and the borrower being unable to make the payments as you would then become responsible to pay any shortfall.

Although this is probably not exactly what you want to hear I hope it clarifies the matter for you. You might want to consider asking the borrower to enter into an agreement with you as to how they will repay you if they default on the loan and you have to make payments on their behalf.

I hope this is useful. Is there anything else I can assist with?

Helen Hill and 5 other Law Specialists are ready to help you