Sometimes you hear that a loan has been “devoured” – that is, an additional person has vouched for the borrower by pledging to repay the obligation if the borrower fails to do so. Although many people think that this is just a mere formality, such a guarantee is binding on the bank and in some situations will actually require the guarantor to pay the borrower’s debt. When does this happen?
Some loans taken by bank customers are so high and risky for the bank that they require additional collateral.
Who is a resident and what is the guarantee of a loan?
The term ” girrant ” is another term for the guarantor – that is, a person who confirms that another person applying for a loan in a bank is able to repay this loan. The guarantor guarantees that the debt will be repaid. Unfortunately, he guarantees this with his assets – if the person who is responsible for the timely settlement of the obligation stops paying the debt, the bank can expect from the ryrant that he will pay the debt.
It seems strange to many people – after all, they were not the ones who took the loan, so how can you expect them to pay off foreign debts? However, the bank was able to grant a loan precisely because of this guarantee, which becomes an additional collateral just in case. It is therefore wise to approach the issue of granting credit guarantees to other people. Of course, you also have the right to claim these debts from the debtor. Unfortunately, it is actually very difficult to recover your debts.
What rights does the guarantor have?
The resident – due to the guarantee of the loan – has insight into the matter of repayment. So he can be somewhat prepared for any trouble, although life shows that most often after eating a loan, these people are no longer interested in the issue of repayment – unless it turns out that there are some difficulties with it. Of course, the citizen also has the right to obtain reliable information from the borrower about his financial situation and how the debt is repaid. On the other hand, the lender has the obligation to immediately inform the ryrant that there have been some delays in repayment or that the borrower has stopped repaying the loan at all.
In turn, when for legal reasons the resident becomes a person repaying the loan, he has the right to require the debt to be repaid. He becomes his creditor. In practice, however, it happens that people in a better financial position agree to repay the loan to a person who can no longer deal with it. Due to their relationship or friendship, they do not expect refunds later. The more seriously you need to consider your consent to gnawing a loan – it may end up paying back the loan granted to someone else, from which you will not see a penny.
This is a serious decision that the loan Penory someone falls – a corresponding amount – creditworthiness of the guarantor. The fact of granting the surety is noted in the Credit Information Bureau.
When does a resident have to pay the borrower’s debt?
Since the citizen vouches for the borrower, committing to the creditor to settle the obligation, if the borrower did not do so, it means that he is exposed even to the taking of salary or real estate by the bailiff. First of all, you cannot ignore information about late payment or calls for payment – it can have tragic consequences.
It is worth to immediately go to a financial advisor or lawyer, and above all to a specific bank and familiarize yourself with the situation. There are certain situations where a resident does not have to pay back the debt – this happens when the entire liability is repaid or when the principal debtor pays the installments on time. In the latter case, you can apply for the withdrawal of the guarantee – thereby securing yourself for a possible worse period. There are other opportunities to circumvent the recipe.
It is worth to get the borrower to insure the loan, making it a condition of guaranteeing the loan agreement. The provisions in the surety agreement are also important – you can put there, for example, information about the maximum amount of the surety and possible financial liability. It is also worth ordering to enter into the loan agreement itself that the bank will first and foremost exercise its rights in relation to the borrower’s assets. Only when all possible measures have failed, will it apply for repayment by the girrant. If you do not have such collateral, unfortunately you will most likely have to pay back the borrower’s commitment…
Recourse claim – how to recover money?
The necessity of paying off the debt by the girrant means that he can apply for recovery of expenses incurred. This is a so-called recourse claim, i.e. a claim for the return of a fulfilled obligation, directed to the main debtor. It starts with sending a request for payment, and then – if there is no answer – you can submit a claim for payment to the court. On the one hand, many people are scrupulous about bringing such a lawsuit to a loved one, but on the other hand, it is worth deciding before getting into financial trouble on behalf of someone else.