5 Replies to “My husband signed as guarantor against a bank loan for a company,compony is closed,bank has filed a case ?”

  1. Sounds like your husband is on the hook for the balance of the loan. He took on the responsiblity for repayment of the loan and now the bank is looking to him for satisfaction.

    Consult an attorney but that is the number one reason why you don’t want to co-sign or make yourself responsible for someone else’s debt.

  2. What you do is contact the bank and work out an arrangement. Unless there is something improper about the paperwork, he will be required to cover the guarantee, so you might as well work something out with them and avoid the hefty legal fees involved, since he’ll likely end up having to pay both his AND the bank’s.

    No, you cannot avoid the debt by transferring assets. The only way that can work is if he declares bankruptcy, and in that case, any asset transfers will be nullified.


  3. He guaranteed the loan. Now he has to make the loan good. The bank can put liens on his house or anything to collect the money due them. No, he cannot put assets in his wife’s name now. That’s fraud. He would not only have to pay up, but risks going to jail for fraud on top of having to repay the debt.

    He should never have guaranteed someone else’s debts. Or he should have protected his assets years ago. The creditor can check on anything he “disposed of” for the prior 3 years.

    Best thing for him to do now is to negotiate a repayment schedule with the creditor.

  4. Your husband is liable to clear the loan and his property can be attached. Guaranteeing or coobligating a loan is nothing but taking full responsibility to clear the loan. The bank can go against the main borrower or the coborrower or guarantor/coobligant to satisfy itself of the recovery of the loan.

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