Unpaid debts: Does the guarantor have the right to claim his money from the debtor?
In case of non-payment, there are several precautionary measures to protect the guarantor
Signing as a guarantor is one of the most altruistic and dangerous financial procedures any person can perform, since by doing so we acquire many responsibilities without obtaining any benefit. If we are determined to do so anyway, we must take at least some minimum precautions, according to LaVanguardia.com HelpMyCash.com.
Let’s imagine the following case: Luis asks the bank for a 20-year mortgage and the bank tells him that it is granted as long as he obtains the signature of an endorsement. So Luis talks to his cousin José and he agrees to take a quick signature, since he knows Luis well and knows that he is a hardworking and reliable guy, who does not usually lack the money.
Twelve years later, Luis unexpectedly loses his job and does not receive any help, so José must now take over the debt, just as he committed twelve years ago. The judge dictates that José sells his car and also that his savings and part of his salary be garnished to answer the debt. Thus, José faces the debt of his cousin with all of his assets and waits for Luis to recover financially to get his money back. Months later, Luis finds work and is recovering. However, when José brings up the subject he only gets long. The relationship with the family member is not the same as before and now Luis has his own family and lives outside of Spain, which makes the contact more difficult. And José asks himself: is there any law that could force Luis to pay?
In this situation, José has to know that, in general, a guarantor can not do anything in the face of the holder’s default more than trying to pay off the debt that is what he committed when he signed the loan contract, and that there are only three shares that can “protect” the guarantor:
1. Sign a counter-guarantee or counter-guarantee on the same day the guarantee is signed. This document certifies before a notary that, in the case in which an endorsement must be executed, the guarantor may claim the payment of the amount that he has had to pay because of the non-fulfillment of the guarantee. If José has this document signed by Luis, he can claim his debt with all of the law.
2. Become a guarantor but only part of the debt , for example, 40%. This will prevent the guarantor from carrying huge debts that can ruin his life.
3. Go to trial . In some cases it is possible to demonstrate that the debtor is able to pay but is “draining the bundle” so that the guarantor is the one who carries the debt. Thus, despite not having signed the counter-guarantee at the time, it is perfectly possible to take someone to court to try to recover the money.
In addition, you have to know two more things before deciding to become the guarantor of someone’s debt. The first is that the guarantee agreement only regulates the relationship and obligations between the guarantor (José) and the bank, but does not say anything about the commitments that the debtor and the guarantor acquire between them (José and Luis); That is why it is so necessary to sign a counter guarantee.
The second thing is that, if the person needs a guarantor to obtain a loan that is not a mortgage, there are products in the market that make it possible without having to commit a guarantor. This is the case of SUizaINVEST in Barcelona, SF Gold in Madrid and Barcelona or GodivaCredit throughout the national territory. These financial intermediation companies allow you to obtain large sums of money in 48 hours, without guarantee or payroll and regardless of whether the applicant is registered in a list of defaulters such as RAI or ASNEF. That yes, we will pay a higher interest than we would pay in the bank.