Standing As Guarantor

[buttons77]

My sister and her husband are splitting up. They have substantial debts and she has asked me to stand as guarantor for her on a flat she's wanting to rent. I am quite happy to do this for her but is there any chance that I would be liable for any of her/their current debts.
Any advice would be greatly appreciated - I very willing and able to help her but the thought of being dragged into their financial mess is scary!!

[bednobs]

well yes ... if the current debts mean that she can't pay her rent i suppose

[woofgang]

Guarantor for the rental means that you become responsible for the any debt arising from the rental. Personally I'd be very careful what you agree to and what you sign.

[Buenchico]

The only person who will know that you've guaranteed a specific debt (i.e. the rent) is the person to whom that debt is owed (i.e. the landlord).

Other creditors will have no knowledge of the guarantee, so they won't even know that you exist. Even if they did, they would have no right to pursue you for debts which you've not chosen to associate yourself with.

[buttons77]

Thanks Buenchico. That's reassuring!
She is very upset at the moment but I have no worries about her paying the rent (even if she couldn't I would be happy to help - she's my baby sister and I love her very much). I was just a but concerned that other creditors may be able to "come after me"

[VHG]

I would not sign it if were you. If she defaults it may affect your credit rating.

[Canary42]

The only way other debts could affect your guarantee is indirectly, as bednobs pointed out. Other debtors may pursue her so hotly she will have to prioritise their repayment above her rent which you will then be liable for. But as Buenchico said, there is no way you can be made DIRECTLY responsible for those other debts.

[buttons77]

Thanks Canary - that's exactly what I needed to know.
VHG - I know that if she defaults I will be liable but I am willing to help her with her rent costs if it becomes necessary, just not with the previous debts.
Thanks everyone for your all your answers.

[ToraToraTora]

you wont be liable for current debts but you will be liable adinfinitum for the flat if she doesn't pay.

[Peter Pedant]

I have started using guarantors for young tenants
There is no question of me telling other people x's Dad is a guarantor ( or indeed X in in arrears - or not ) as it makes it less likely he will pay than more.

I would also strongly resist anyone else saying "X's Dad is guaranteeing X's rent so he must be a creditor for me ! " My first reaction would be no no no no that is not the case at all. no absolutely no

Make sure in a letter to your sister that you are only guaranteeing rent
and you will have to co-sign the lease, add in above the signature:
"I guarantee the rent and no other debt"

Oh and well done for being a brick in a time of need
[ Just seen the lost honour of Chris thingey on tee vee and all the rats crawl out of the sewers AFTER he wins and say we didnt really think....and he behaves quite well to be honest]

[Peter Pedant]

3T

no she wont be responsible ad infinitum

it will be for rent arrears.... as a landlord, if the landlord wants the guarantor to pay, he would have to go to court...and if he has to do that, I would cut loses by seeking eviction in the first instance.

and well done for stepping forward...buttons

You will have to discuss who is putting up the deposit ?
remember this is NOT rent.... see above

[ToraToraTora]

"I guarantee the rent and no other debt"

I doubt they'll accept that. they'll have a predefined doc to sign which will in effect assign liability for all expenses.

A mate of mine got stuck with this when he guarantored his son in a shared house as a student. 6 shared the house and divded the rent+costs but they where all liable for all the rent+costs. When, overtime, several welched on it, he found himself being chased for the lot. Not the case here as it's one person but a cursory tale none the less.

[lcg]

you will not be responsible for anything other than her rent - but do not do it!!! there are plenty of ways to rent other than using a guarantor, for example, make her go and see her local housing department and they will have a list of landlords that she can use and other advice. you do realise that if she defaults or becomes incapable of paying, say, £600 for a year that it will cost you £7200? and if you do not have whatever her months rent is as spare cash at the moment that you will not be able to pay your rent/mortgage and/or bills.......as the guarantor WILL chase you. my son asked me to do this and much as i love him (and he works, is at uni etc.) i WILL not put my home at risk for anybody. blood is thicker than water, but that doesn't mean that your sister won't screw you over if it means saving herself. think about what you are doing.......

[lcg]

p.s. she's in debt now.....and obviously struggling, so what makes you think she is such a good financial gamble - to put your life on the line for? it's not being selfish - your sister is the selfish one asking you to do this. i implore you to think twice.

[Peter Pedant]

// but they where all liable for all the rent+costs. // TTT
that is more about 'joint and severally liable'

than should I do it at all.

[ToraToraTora]

yes I agree PP, just pointing out a case of how this can go wrong. Buttons77 listen to lcg, with the best will in the world, and I don't know your siblings, people who need a net and know they have a net, use it. I have 3 sisters and 2 brothers and out of that lot I would consider guarantoring only one of them and she is the one least likely to need it. Beware!

[Peter Pedant]

3T you are answering the question: 'Does any one out there have siblings out there they wouldnt give time of day to ?'

along with me, the answer is obviously yeah.....

but the q is about limiting a guarantee only to one potential debt and the annswer is yes you can. I think the add-on would work to be honest

[buttons77]

Thank you everyone for your advice.
I asked the question regarding the possibility of my being liable for past debts and this has been answered very well.
My sister has not asked me to be her guarantor - I very willingly offered.
She is not the irresponsible one - her husband was but he was very controlling and as I am learning more about the situation I am glad in a way that he is going. I am very confident that she is not "using" me in any way whatsoever and I fully intend to stick by her whatever happens.

[ToraToraTora]

ok buttons, I was just making you aware of what you are getting into.

[beso]

Even though you would only be responsible for the rental, remember it is wholly your daughter's choice which debts she services.

You could easily end up carrying the can.

[beso]

sorry, sister, not daughter.