A good friend is in financial trouble. "I don't need money from you, I just need a guarantor," she says. That sounds harmless at first. If you want to help quickly and unbureaucratically and act as a guarantor, you don't have to put money on the table right away. He only promises to help in an emergency – namely when someone else can't pay his debts. But there's a lot more to it than just a signature. Whether the brother-in-law wants to buy a new car, the grown-up children need a mortgage or the neighbor cannot finance his planned renovation without a guarantor – there are always reasons to ask someone for a guarantee. But be careful: If you really only want to do good, you can quickly fall into the trap and, in the worst case, end up with a pile of debts.
The surety is a unilateral contract
By law, a surety bond is a legal contract that obligates the guarantor to pay for the debts of another when the latter is unable to pay his creditor (often the bank). If necessary, the guarantor is liable with all his assets – for a service for which he receives nothing. The guarantor has obligations, but no rights in return. That is why guarantees are very one-sided and risky affairs.