Co-Signing or Guaranteeing a Loan - Revision history

Drew Jackson: /* Legal advice */

2023-11-16T22:54:28Z

Legal advice

← Older revision		Revision as of 22:54, 16 November 2023
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	:'''People’s Law School'''		:'''People’s Law School'''
	:See more options for free or low-cost legal help.		:See more options for free or low-cost legal help.
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Drew Jackson: /* Work out problems */

2023-11-16T22:53:28Z

Work out problems

← Older revision		Revision as of 22:53, 16 November 2023
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	==Work out problems==		==Work out problems==

	===~~The steps at a glance~~===		===Step 1. Consider whether you are liable===
	~~There are steps you can take to work out problems that arise when co-signing or guaranteeing a loan.~~

	~~'''Step 1.''' Consider whether you are liable<br>~~
	~~'''Step 2.''' Negotiate a reduced payment<br>~~
	~~'''Step 3.''' Negotiate to limit your liability<br>~~
	~~'''Step 4.''' Make an agreement with the other borrower~~

	~~===Dig into each step===~~
	~~'''Step 1. Consider whether you are liable'''<br>~~
	In some cases you may not be responsible for a debt if you guarantee or co-sign a loan. For example, a lender (or borrower) can’t use force, fraud, duress or illegal means to get you to sign.		In some cases you may not be responsible for a debt if you guarantee or co-sign a loan. For example, a lender (or borrower) can’t use force, fraud, duress or illegal means to get you to sign.

	The law allows certain defences for guarantors that aren’t open to co-signers. For example, if the lender and principal debtor make changes to the guarantee that are harmful to the guarantor, the guarantor may not be liable.		The law allows certain defences for guarantors that aren’t open to co-signers. For example, if the lender and principal debtor make changes to the guarantee that are harmful to the guarantor, the guarantor may not be liable.

	~~'''~~Step 2. Negotiate a reduced payment~~'''<br>~~		===Step 2. Negotiate a reduced payment===

	Say you’ve co-signed or guaranteed a loan, the borrower has defaulted, and the lender is asking you to pay up. What do you do if you can’t afford it? One option is to negotiate a reduced payment. The lender may agree to release you from liability if you pay a portion of the loan.		Say you’ve co-signed or guaranteed a loan, the borrower has defaulted, and the lender is asking you to pay up. What do you do if you can’t afford it? One option is to negotiate a reduced payment. The lender may agree to release you from liability if you pay a portion of the loan.

	~~'''~~Step 3. Negotiate to limit your liability~~'''<br>~~		===Step 3. Negotiate to limit your liability===

	Consider negotiating with the lender to limit your liability for the loan. For example, the lender may agree to release you from responsibility if:		Consider negotiating with the lender to limit your liability for the loan. For example, the lender may agree to release you from responsibility if:

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	* there are enough other co-signers or guarantors to satisfy the lender		* there are enough other co-signers or guarantors to satisfy the lender

	~~'''~~Step 4. Make an agreement with the other borrower~~'''<br>~~		===Step 4. Make an agreement with the other borrower===

	As a guarantor or co-signer, you can make a separate contract with the other borrower. In it, you can set out what happens in the event of a default. For example, you could say that the other borrower must reimburse you for any payments you make if they default. This is called “indemnifying” you.		As a guarantor or co-signer, you can make a separate contract with the other borrower. In it, you can set out what happens in the event of a default. For example, you could say that the other borrower must reimburse you for any payments you make if they default. This is called “indemnifying” you.

Drew Jackson: /* Protect yourself */

2023-11-16T22:52:15Z

Protect yourself

← Older revision		Revision as of 22:52, 16 November 2023
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	==Protect yourself==		==Protect yourself==
	===~~The steps involved===~~		===Step 1. Ask questions before guaranteeing or co-signing a loan===
	~~Taking these steps can prevent problems when~~ co-signing ~~or guaranteeing~~ a loan.

	~~'''Step 1.''' Ask questions<br>~~
	~~'''Step 2.''' Ask the lender to keep you informed<br>~~
	~~'''Step 3.''' When the loan is paid off~~

	~~===More on each step===~~
	~~'''Step 1. Ask questions before guaranteeing or co-signing a loan'''<br>~~
	Before putting yourself at risk, ask questions like:		Before putting yourself at risk, ask questions like:
	* Why does the lender want a co-signer or guarantor?		* Why does the lender want a co-signer or guarantor?
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	* Can you afford to pay off the loan if the borrower can’t?		* Can you afford to pay off the loan if the borrower can’t?

	~~'''~~Step 2. Ask the lender to keep you informed~~'''<br>~~		===Step 2. Ask the lender to keep you informed===
	Ask the lender (in writing) to keep you informed in writing of all activity on the loan. This can help you catch a problem before it’s too late.		Ask the lender (in writing) to keep you informed in writing of all activity on the loan. This can help you catch a problem before it’s too late.

	~~'''~~Step 3. When the loan is paid off~~'''<br>~~		===Step 3. When the loan is paid off===
	Once the loan is fully repaid, take steps to end your responsibility. For example, ask the lender to return the original loan document to you. Or ask for a document releasing you from all liability for the debt. This could be a letter of acknowledgment, a copy of the borrower’s discharge, or a release.		Once the loan is fully repaid, take steps to end your responsibility. For example, ask the lender to return the original loan document to you. Or ask for a document releasing you from all liability for the debt. This could be a letter of acknowledgment, a copy of the borrower’s discharge, or a release.

Elena Renderos: /* Legal advice */

2023-11-14T03:54:59Z

Legal advice

← Older revision		Revision as of 03:54, 14 November 2023
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	:[https://www.accessprobono.ca/get-legal-help Visit website]		:[https://www.accessprobono.ca/get-legal-help Visit website]

	:People’s Law School		:'''People’s Law School'''
	:See more options for free or low-cost legal help.		:See more options for free or low-cost legal help.
	:[https://www.peopleslawschool.ca/options-legal-help/?utm_source=beagle Visit website]		:[https://www.peopleslawschool.ca/options-legal-help/?utm_source=beagle Visit website]

Elena Renderos: /* Legal advice */

2023-11-14T03:54:40Z

Legal advice

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	:'''Lawyer Referral Service'''		:'''Lawyer Referral Service'''
	:Helps you connect with a lawyer for a complimentary 15-minute consult to see if you want to hire them.		:Helps you connect with a lawyer for a complimentary 15-minute consult to see if you want to hire them.
	* Call 1-800-663-1919		:Call 1-800-663-1919
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Elena Renderos at 03:54, 14 November 2023

2023-11-14T03:54:09Z

Show changes

Drew Jackson: Drew Jackson moved page Co-Signing or Guaranteeing a Loan (No. 248) to Co-Signing or Guaranteeing a Loan: Taking out recording numbers

2023-11-07T01:28:39Z

Drew Jackson moved page Co-Signing or Guaranteeing a Loan (No. 248) to Co-Signing or Guaranteeing a Loan: Taking out recording numbers

← Older revision	Revision as of 01:28, 7 November 2023
(No difference)

Drew Jackson: /* If you guarantee a loan */

2019-03-29T22:01:03Z

If you guarantee a loan

← Older revision		Revision as of 22:01, 29 March 2019
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	===If you guarantee a loan===		===If you guarantee a loan===
	A lender who’s nervous about loaning someone money may ask for a ~~'''~~guarantee~~'''~~. A guarantee is a promise by another person to pay the debt if the borrower doesn’t pay. The person guaranteeing the debt is the "guarantor".		A lender who’s nervous about loaning someone money may ask for a guarantee. A guarantee is a promise by another person to pay the debt if the borrower doesn’t pay. The person guaranteeing the debt is the "guarantor".

	====The guarantor’s responsibility for the debt====		====The guarantor’s responsibility for the debt====
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	Before you sign a guarantee, find out what type of guarantee it is. A guarantee document may have one or more of these types of guarantee.		Before you sign a guarantee, find out what type of guarantee it is. A guarantee document may have one or more of these types of guarantee.
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	===If you co-sign for a loan===		===If you co-sign for a loan===
	When you '''co-sign''' for a loan, you and the borrower are now equal owners of the debt. You are “joint debtors”. Each of you is independently responsible for paying back the loan. If one of you fails to make payments, the lender can expect money from the other. The lender needn’t even ask the borrower. They can come directly to you.		When you '''co-sign''' for a loan, you and the borrower are now equal owners of the debt. You are “joint debtors”. Each of you is independently responsible for paying back the loan. If one of you fails to make payments, the lender can expect money from the other. The lender needn’t even ask the borrower. They can come directly to you.

Drew Jackson at 22:00, 29 March 2019

2019-03-29T22:00:33Z

← Older revision		Revision as of 22:00, 29 March 2019
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	{{REVIEWEDPLS \| reviewer = [https://www.icbc.com/ Stan Osobik], ICBC, and [http://www.robertslaw.ca/ Adam Roberts], Barrister & Solicitor \|date= October 2017}} {{Dial-A-Law TOC\|expanded = money}}		{{REVIEWEDPLS \| reviewer = [https://www.icbc.com/ Stan Osobik], ICBC, and [http://www.robertslaw.ca/ Adam Roberts], Barrister & Solicitor \|date= October 2017}} {{Dial-A-Law TOC\|expanded = money}}
	Before lending money to someone, a lender may ask for someone else to ~~“co~~-~~sign”~~ or ~~“guarantee”~~ the loan. Learn what to consider if you’re asked to co-sign or guarantee a loan.		Before lending money to someone, a lender may ask for someone else to “'''co-sign'''” or “'''guarantee'''” the loan. Learn what to consider if you’re asked to co-sign or guarantee a loan.

	==Understand your legal rights==		==Understand your legal rights==
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	:Web: [http://www.consumerprotectionbc.ca/ consumerprotectionbc.ca]		:Web: [http://www.consumerprotectionbc.ca/ consumerprotectionbc.ca]


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Elena Renderos at 07:58, 28 March 2019

2019-03-28T07:58:48Z

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	{{~~Dial-A-Law Blurb~~}}		{{REVIEWEDPLS \| reviewer = [https://www.icbc.com/ Stan Osobik], ICBC, and [http://www.robertslaw.ca/ Adam Roberts], Barrister & Solicitor \|date= October 2017}} {{Dial-A-Law TOC\|expanded = money}}
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	Before lending money to someone, a lender may ask for someone else to “co-sign” or “guarantee” the loan. Learn what to consider if you’re asked to co-sign or guarantee a loan.		Before lending money to someone, a lender may ask for someone else to “co-sign” or “guarantee” the loan. Learn what to consider if you’re asked to co-sign or guarantee a loan.

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	:Web: [http://www.consumerprotectionbc.ca/ consumerprotectionbc.ca]		:Web: [http://www.consumerprotectionbc.ca/ consumerprotectionbc.ca]



	~~[updated October 2017]~~

	~~'''The above was last reviewed for legal accuracy by [https://www.icbc.com/ Stan Osobik], ICBC, and [http://www.robertslaw.ca/ Adam Roberts], Barrister & Solicitor.'''~~

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