i am planning on going bankrupt very soon but a friend took a loan out in their name when i thought my business would survive ,we cant just forget this but are struggling with the payments ,and his credit rating etc would be affected if payments are missed ,are the bank likely to take a reduced lump sum payment if i approach them ( lend money off parents).thanks
that would depend entirely on the financial position of your friend. The loan is his and therefore if he has assets they are at risk.
If he has no assets then the lender may be willing to negotiate a lump sum (which must be introduced by a 3rd party but not you personally if you are declaring bankruptcy). If your parents were to introduce the funds the payment should come directly from their account, not via yours.
There may be alternatives to this such as reduced payments that your parents could service for him on a monthly basis until your discharge. Once discharged, and assuming your income has not been affected AND assuming you will not be paying into an IPA, you could resume the full payments then.
i am planning on going bankrupt very soon
Posted - 20 November 2008 : 23:11:55
