Do Letters of Guarantee make debt secured or unsecured?

F

FioBi

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We took out a commercial loan 7 years ago to buy land and develop two houses. We have finally sold the houses but at a significant loss - 290K still owed to the bank.

We paid interest on the loans for the last 7 years but are no longer able to as OH has been diagnosed with cancer and being self employed is no longer earning.

As part of the original loan agreement a relative signed a bank guarantee for 160K. Is this considered secured debt or unsecured debt?

I am not sure whether we should apply for a DSA or PIA?

If we could raise some funds what would be an advisable cash offer to make?
 
Your debt is unsecured. You should be applying for a DSA assuming you own no other property.

If your relative has guaranteed €160k they will seek full recovery if they think that the relative has the money.

Brendan
 
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