How to terminate the contract of guarantee on the loan

Guarantee agreement loan

With loans now I had time to get to know almost everyone - someone like the borrower, and someone, and as a surety. As a rule, the role of the guarantor agree only close relatives and friends of the borrower, but even if the intentions are pure and that revenues allow arrears without pay on the loan, sometimes consent to bail has to bitterly regret.

By signing a contract of guarantee contract of guarantee, the guarantor borrower shares with all his duties and responsibilities to the lender. If the borrower to repay the loan will not be able to, the credit will fall on the shoulders of the guarantor, is obliged to pay the debts of others. In the case of non-payment of another loan, the bank may go to court and demand to eliminate debt from the funds and property of the guarantor. Also, do not forget about the debt transfer procedure of the loan in case of death of the borrower. Under the law, the guarantor will be required to pay the remaining amount of the loan plus interest and fines for delay loan. The chance of a successful termination of the contract of guarantee in this case is zero.


It is worth remembering that the responsibilities of the borrower and the guarantor are almost identical, but the rights under a contract from the guarantor virtually none. By signing the treaty, the guarantor prefer to think that the borrower will pay all without any delay, but when the loan becomes a problem, give up the guarantee the burden was too late.

How to terminate the contract of guarantee

Doubt the correctness of the decision after signing the contract, it should terminate until the borrower no problems, and the loan is paid without delinquency. Getting rid of the guarantee can provide banks with a new candidate to replace themselves. A new candidate for the surety must have a stable income, good credit standing and, of course, the desire to become a guarantor.

Parting with the duties of a guarantor can, if payable by credit card or loan has been transferred to the new borrower. Depending on the financial situation of the new borrower, guarantor or do not need, and if required, they will have someone else.

At the signing of the contract of guarantee is worth paying attention to the specified expiration date. If the expiration date is not specified, following the letter of the law, within a year the surety is considered free from any obligations. Treaty should be given special attention. After careful consideration of the documents before signing, or using the services of a lawyer, you can always find a place, which, if necessary, be able to help get rid of the guarantor responsibilities on someone else's loan.