Under the terms of the surety agreement, you undertake the fulfillment of the debt obligations of another party to the agreement, which he accepts to the credit institution. This form of collateral takes into account the requirements that have already arisen, as well as those that will appear in the future. If, as a guarantor, you want to terminate the contract, consider this possibility in advance, since it is quite difficult to stop being a guarantor even in court.
Instructions
Step 1
Study carefully the loan agreement and the surety agreement that you have to sign. Having understood the intricacies of the documents, you will save yourself from many troubles in the future. If you do not fully understand the consequences of concluding a surety agreement, refuse to participate in the agreement, even if you have to spoil your relationship with the person who asked you to act as a surety.
Step 2
Apply to the credit institution, the loan guarantor of which you are already. In your application, please indicate reasonably compelling reasons why you cannot continue to be a surety. This can be, for example, a change in your life circumstances that do not depend on your will and reduce your ability to pay.
Step 3
Be sure to register the application with the secretary or send it to the bank by registered mail with notification. Wait for a decision on your application. Credit institutions in most cases respond to such statements with a justified refusal, referring to the provisions of the law. But in some cases, the bank may decide in your favor and change the guarantor.
Step 4
Go to court if there is a written refusal from the credit institution. Submit convincing evidence to the court that you are unable to act as a loan guarantor any longer. If you're lucky, the court will rule in your favor.
Step 5
Arrange for the borrower to repay the loan or repay it yourself. In this case, the surety agreement is also terminated. In order for such a step to be possible, the loan agreement must provide for the early repayment of obligations, so carefully study the documents signed with the bank.
Step 6
Wait until the term of the guarantee specified in the agreement expires. Even if by this time the loan has not been fully repaid, your guarantee is terminated. If the contract does not specify the term of its validity, the surety is terminated if the creditor does not bring a claim against you within a year after the due date for the fulfillment of the obligation.
