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Thread: defaulting on a loan

  1. #1
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    Default defaulting on a loan

    In 2002 I signed as avalista for a loan for my daughter who was 19 years old of 30000 euros for a business that she was setting up . Unfortunately the business folded and the loan was recalculated for 10years in about 2005 . The loan was paid until mid 2007 when around 15000 euros was still owing . At that point I was not doing well in Spain financially and had areas on my own mortgage . I sold my house in Spain and returned to the UK .The rest of my Daughters loan has remained unpaid .
    Can I ask what will be happening where the loan is concerned .If my daughter returns to Spain will she get an embargo or am I now responsible for the loan .
    Also is there a period of time at which time the loan is underwritten by insurance .
    I am afraid to contact the bank involved in case I now owe millions with interest .
    Many Thanks

  2. #2
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    Dear Sir or Madam

    You are both responsible for the loan's repayment.

    If she returns to Spain her assets may have acharge placed against them, yes.

    In fact, the lender may sue you in the UK. Being such a low amount they may have turned down this option however.

    Yours sincerely
    Raymundo Larraín Nesbitt

  3. #3
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    Default loan

    I would like to clear the debt to make the way clear for my daughter and once I sell my home I should be able to do this . May I ask if it is likely that the 15,000 euros will now be a great amount more .

  4. #4
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    You can be sure it will be more, of course.

    To know exactly the amount you would need to contact your lender.

  5. #5
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    I know of a couple who's loan was written off after being unpaid for 7 years .

    Perhaps a negociation could be considered to clear the debt if it is still there .

  6. #6
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    I'm sure your lender will be all ears to your payment proposal.

    You do not lose anything by trying.

  7. #7
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    Thankyou for your advise

  8. #8
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    You are welcome.

  9. #9
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    Default

    I took out a loan from a Spanish bank for 1500eu about 22 years ago I paid back about half then my wife died and I fell on to hard times and returned to the uk.,about 18 years ago.I would very much like to go on holiday there but am unsure if this would come up in passport control.

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