VIC Business Vehicle Lease Default - Debt Help?

[Karlaallison]

Hello,
My brother and I previously ran a business together, long story short the business didn't go too well and is no longer running. Whilst the business was still in action my brother and I both took out a business vehicle lease and got a work van each. Because business was not going too well we were unable to make payment on the vehicles. I no longer talk to my brother. My car got repossessed. However, my brother has done a runner with his and won't hand the vehicle back over. I have been receiving default letters for his vehicle because we both went guarantor on the vehicles. He has already lost his house. Now I am worried this is going to cause me to lose my house also. What actions can I take? How can I fix this? Please help

 

[Sophea]

Hi Karlaallison,

Unfortunately the circumstances in which you can avoid your obligations as guarantor are extremely limited. Ultimately whatever the bank can come after your brother for, they can come after you for. Your light at the end of the tunnel is your right to then sue your brother for whatever you have paid to the bank.

If possible, I would try to track your brother down and assist the bank to locate him so that they can repossess his car . Hopefully the vehicle as security for the loan will cover the debt.