First ,you should never go Guarantor!There are other ways of doing it.Also the Finance Provider MUST give you separate written Information about being a Guarantor,including how & where to get advice.If they have not done so,your Contract may be void.Try and protect any Property you own,by putting a Caveat on it,in favour of a family member.If down the track ,they mention Bankruptcy,remember you can seek protection under Part 1X of the Bankruptcy Act,which still protects you and sets up a Re payment scheme.A good Community Financial Adviser can stem in and handle everything,once you apoint one your Creditors MUST deal with the Advisor,only.

I hadve ha 6 years as a Counsellor with Small Business Victoria,Small Business Mentoring & Counselling Service.

robert101

Debbie is right. Also your daughter and you could visit a life line, or other, free financial officer for help. These things need to be done without delay. I wish you well. I know how stressed you will feel at the moment.

Sounds like your mental health needs some sonsideration too not only your daughters. Thta is the trouble with most people these days they are all so busy trying to help the younger generation they fail to see their own worries. After all if your health fails who is going to have to pay?

My son came to me wanting to use my house as surity so as to property invest & grow rich.

Not -

Hey ma how about we go halvies & get rich together.

I rang Insolvency & Bankruptcy & asked them what they thought.

"Don't do it." they said

And I didn't - i wasn't going to anyway.

He still hasnot forgiven me but since then he has had to sell the roof over their very own heads & rent.

I thought back & remembered that when he was 3 - he was an obstinent little boy & it continued like that throughout. I realised that he was not my favorit child in the whole wide world in the first place.

It is always harrowing for people to find that their business matters are going awry.

Circumstances will have determined why that has happened. Sometimes it is the fault of the business proprietor or sometimes through circumstances completely beyond their control.

One way or the other, through absolutely no fault of their own, suppliers, lenders and other similarly helpful people are the ones who are being forced to land up losing money because of the inability of the business proprietor to conduct their affairs prudently. (There are a few possible exceptions to that).

It is all too easy for people to simply say "I couldn't manage my business affairs - now you (the trusting and helpful supplier/lender) can just lose your money".

I believe that there should be a good degree of conscience applied here. You wanted to help your daughter set up a business. You offered to "stake" her by telling a lending institution that you would guarantee her debt. You are as responsible as your daughter to pay the debt that you guaranteed.

You have received some good advice on what you and your daughter might do to preserve the business (if able to be salvaged) and protect both your personal interests but I do think you should not forget the people who are really going to lose their money because of your daughter's business failure. They may be finding it hard to stay afloat themselves and, after all, this should not be their problem.

If you guaranteed a debt - prepare to meet your commitment. It will probably be enforced anyway.

Could we have explained to us users the new policy of censorship as I have now had two posts removed from this thread .

This is an awful - but very common situation. A very large number of newly registered businesses fail within the first one or two years. The reasons are many, but often include not doing realistic pre-setup research, not having a proper business plan, and not considering what will happen if things go wrong. We all like to be positive and encouraging, but playing "Devil's Advocate" is a sensible step to take before any decision.

If you do decide to go guarantor for anyone, make sure you keep a daily or weekly "hands on" eye on what is happening - and that this is put into a written agreement. Look out for any hidden signs that the business or the people involved are in difficulty - and do something early.

Two of my family members set up businesses which were very successful - until the paperwork side was left to a spouse who had no training and didn't want to be doing the "boring stuff". They also had no understanding of the difference between "takings" and "profit", so used the business as a "piggy bank" for personal expenditures.  Both businesses "went down the gurgler". Both relationships failed, and one nearly cost the parents their house.

The parents house was saved because the father was able to step in and sort out the mess. He visited every single person who was owed money, apologised, and made sure he set up and implemented a pay-back plan. People know that if the business goes bankrupt, they are unlikely to see any of their money - so are generally willing to go along with such a plan. 

Good luck to you Toby.

If you really want to commit financial sucicide,you should  go Guarantor,try being a Co-Borrower then if the other party fails you are not liable for the full debt.But PLEASE get professional advice.

robert 101

It is sad so many people do not understand the gravity of a guarantor until it is too late.

A bit of advice I have always followed "never go guarantor for anyone...and never put your home on the line."

If the bank does not think they are a good risk why would you?

I LEARNED THE HARD WAY,     FORTUNATLLY IT WAS NOT A BIG LOAN,   BUT NEVER THE LESS,, I WAS LIABLE AS A GARANTOR,   NEVER GO GARANTOR FOR ANYONE UNLESS YOU HAVE ENOUGH TO REPAY WHATEVER THE LOAN IS,   HOPEFULLY YOU WONT HAVE TO,  BUT JUST BE SURE , EVEN FOR FAMILY,    REMEMBER ITS YOUR MONEY,