Residents of Pomorie explained what threatens the guarantee on the loan

Explain. Arkhangelsk region in social networks told about the risks of guaranteeing loans.

The guarantor signs a separate contract with the bank and agrees to be liable for the borrower’s loan, usually on the same terms and in the same amount as the debtor.

Most often, the contract provides for joint and several liability. In this case, the bank does not need to first try to recover the debt from the borrower: if he stopped paying, the lender can immediately fully or partially recover from the guarantor the principal debt, interest, penalties and penalties, as well as expenses, if the lender goes to court.

If the borrower dies, the debt goes to the heirs. When there are no funds or property received is not enough, the bank has the right to demand money from the guarantor. If the borrower goes bankrupt, the debt can be written off – this will happen if the bank does not declare its claims before the end of the lawsuit. As a rule, after that to collect money from the guarantor will not work.

If the guarantor does not pay, the delay will affect his credit history and, most likely, prevent him from getting his own loan. Then the bank can apply to the court, after which the bailiffs have the right to write off money from accounts, withhold up to 50% of wages, arrest and sell property, restrict travel abroad.

If the guarantor repaid the loan instead of the borrower, he can demand the amount paid back from him, including through the court.