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