Being a guarantor
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If your friend or family members borrow money say from the bank and you are his guarantor and than he disappears after that, can the bank make you pay on his behalf?
If yes, what if you do not pay? Can the bank sue you? What are the chances of the bank winning the case?
If the bank win the case, do you have to pay the entire remaining sum borrowed or just a part of the loan?
If you don't pay can the court order to freeze all your assets and to give everything that you have to the bank and than make you a bankrupt?
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Originally posted by Daveteo:
If your friend or family members borrow money say from the bank and you are his guarantor and than he disappears after that, can the bank make you pay on his behalf?
If yes, what if you do not pay? Can the bank sue you? What are the chances of the bank winning the case?
If the bank win the case, do you have to pay the entire remaining sum borrowed or just a part of the loan?
If you don't pay can the court order to freeze all your assets and to give everything that you have to the bank and than make you a bankrupt?
Yes , can sue you.
Yes you can be made a bankrupt.
Yes you are liable if they default.
That's the purpose of a guarantor.
You really want to help ? Then make sure you have sufficient money to pay up if they run away.
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1 - being a guarantor means that you guarantee that the debt will be paid. you will be responsible to repay the debt if anything happen to the debtor (ie debtor ran away/ die).
2 - there is no case to win or lose as when you become a guarantor, it is already legally binding for you to be responsible for the debt in the event anything happen to the original debtor.
Why cant you pay? Are you working? If you have a stable income, the bank will get a court order to garnish your pay (take a certain percentage of your monthly salary) until the debt is settled. If you have no stable income and depending on the size of the debt, you may be made a bankrupt and your assets may be seize (not only freeze) to cover the outstanding debt.
3 - you have to pay the entire outstanding amount.
4 - depending on the outstanding amount as it cost the bank $$$ to make you a bankrupt and to seize your assets.
In conclusion, if you signed on to be a guarantor and the original debtor run, you are automatically responsible for the debt. Legally, there is no case to argue.
If you are looking for any legal recourse, please get a lawyer to read through original contract that you signed and see if they can help. Its worth a try but banking contracts are usually very through.
Next time,
1 - Think long and hard before becoming a guarantor.
2 - Read through the contract carefully and understand all the terms and conditions before signing anything. -
never ever be a gurantor if you cant afford to pay the sum
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Signing on as gurantor does not mean the end of the world and that all is lost.
I give u some ideas on how to release urself from such obligations if applicable:-
It depends really what was ur state of mind when u signed in as a guarantor.
Did a legal rep or creditor from the bank advise u on your obligations as a gurantor ?
Was there undue influence ? Unconscionability ? Misrepresentations ? - These are all vitiating factors allowing u to avoid the contract of gurantee.
If yes u can seek advise from a legal counsel on ur next move.
But for the purposes of sureties in Sg,
It has been said that the liability of the surety arises strictissimi juris - the contract of gurantee is to be strictly construed innfavour of the surety.
Firstly , the surety is entering into a liability no for himself but for a 3rd person; therefore it is the duty of the creditor to see that the obligation is couched in clear terms so that the surety understands the liability he is undertaking.
Secondly, the surety often recieves no benefit for for his onerous obligation.
You can also discharge yourself of surety.
i) Variation of principal contract
ii) Departure from T of Gurantee
iii) Alterations of T of Gurantee
iv) Agreement to give time to principal debtor ( The person that is actually in debt)
v) Agreement to give time to Surety (U)
and many many eg Non-disclosure , Prejudice.....etc
Then u look at ur rights as a surety
- You have as of right under law , to pursue the principal debtors. Exercise ur right of claim, u can bring two kinds of claims against them. Restitution and Indemnity.
In equity, ur rights of indeminity can be exercised.
But for ur case, they have run off, so, means u can anytime exercise the right of indemnity or just sue them for restitution.
However, if u are really able to bring in the issue of unconscionability, courts will have discretion, as they dont look highly upon oppression in the guise of performance gurantees.
So, carefully think through the time u entered into contract as a gurantor.
Good luck yo !
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Originally posted by Daveteo:
If your friend or family members borrow money say from the bank and you are his guarantor and than he disappears after that, can the bank make you pay on his behalf?
If yes, what if you do not pay? Can the bank sue you? What are the chances of the bank winning the case?
If the bank win the case, do you have to pay the entire remaining sum borrowed or just a part of the loan?
If you don't pay can the court order to freeze all your assets and to give everything that you have to the bank and than make you a bankrupt?
the idea of getting a guarantor is to make sure someone pays the bill.
if the original borrower runs...it will be as if the guarantor got the loan himself.Bankruptcy included.
if the bank wins the case...then U pay whatever that is outstanding to the bank + court fees + lawyer fees(both urs and theirs)
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Who do you have in mind to be your doomed guarantor?
Forget about all the scams and walk a straight life....go to a confession box this weekend or PM me to confess..it's been some time oreaddy!
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actually, it'll be hilarious if the TS tries one of his moronic scams, gets into huge amounts of trouble and gets his ass thrown in prison.. or gets his ass kicked by loansharks
experience teaches a fool, and i'm wagering he's worse than one so he'll probably live a life which will be a warning to others
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lol Bear.. xD
At least he fullfills his role on earth as a warning to others in his lifetime.
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Originally posted by BadzMaro:
lol Bear.. xD
At least he fullfills his role on earth as a warning to others in his lifetime.
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In law, don't ever undertake to be two things: a trustee and a guarantor.
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Originally posted by RETARDED_MORON:
In law, don’t ever undertake to be two things: a trustee and a guarantor.
Add one more, do not be a bailor.
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YOu sound worry. Did you sign the doc to be someone's guarantor?
Once you sign it, you are liable for the legal actions
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Originally posted by Dondontan:
YOu sound worry. Did you sign the doc to be someone's guarantor?
Once you sign it, you are liable for the legal actions
u mean daveteo?cant be right
u see all his posting
always like very happy go lucky one
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Originally posted by noahnoah:
u mean daveteo?cant be right
u see all his posting
always like very happy go lucky one
Everyone has problem. Is daveteo imagining he is a guarantor? -
Why I will never be a guarantor.
Firstly, I am not willing to just give away 100 grand or even 10 grand for anybody, even relatives, brothers and sisters included. Guarantorship is for those who have the money and can give it away without blinking, i.e. a millionaire.
Secondly, the debtor gets the money and enjoy the money from the bank at no risk. The risk is on the guarantor. The debtor gets the cake and eat it, The guarantor gets nothing, nada, zilch.
Thirdly, the bank wisely do not pursue the debtor, but go for the guarantor. This is because if the debtor can pay, or is willing to do so, will do so, else no use chasing someone with no money and in a financial hole. The guarantor is the better option for legal action. The bank get their money from you, and leave you to recover from your friend or relative.
Unless you have the money to just pay up on default, don't be a guarantor. Say you are overcommitted already, your car, your flat, your motorcycle what not has not been fully paid up and you cannot commit yourself anymore, no matter how strong the assurance that there is no risk and it is just a formality, and for friendship sake.
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Being a Guarantor means borrowing money from Banks or Loan shark and giving the money to ur family or friends.Its the same.
Its really that simple.
Its the same as Lending money to ur friends or families.Lending money without contract means giving ppl money.If they doesnt pay,u cant do anything? U not goin to beat up ur friends right? even beating ppl up gets u into trouble with the law too.
I know u going to tell me the big shit about trust, friendship & bullshit like this right?When it comes to money,there is no friends or family.Its all for yourself.If u still insist that i am wrong,then borrow me some money.I will return u one day(till u die).
I am saying this because i seen so much ppl losing money to so call friends and families.
One advice to everyone.If u wan to borrow money or be guarantor,dun expect to get ur money back. Like this,u will live a longer life.
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Guarantors are like American female porn actors
Eventually they get farked in the azz for nothing.
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Hi Guys!
Just wondering, can a guarantor eventually files the debtor or borrower bankruptcy if the debtor fails to pay the creditor?
Like probably produce some liability papers in writing for the debtor to sign before being a guarantor or perhaps eventually engaging a lawyer to produce the necessary papers for the debtor to sign?
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You can file for bankrupcy, when your instalment plan is not enough or your TV, your referigerator, your furniture, your home appliances, your jewelery, car, and any other valuables seized by the sheriff is not enough to cover the debt.