A surety, or guarantor, is the person responsible for payment or performance for another party, should the original party fail to pay or perform. The performance may be a debt or the posting of a bond, such as a construction bond.
The surety relationship is established by contract and involves three parties:
▪ The obligee/creditor: the party to whom the debt or obligation is owed.
▪ The obligor/principal debtor: the person who has the primary responsibility to perform (to both obligee and surety.)
▪ The surety/guarantor: the person who promises the obligee/creditor that he/she (surety/guarantor) will be liable for the performance of the obligor/principal debtor.
When a debtor defaults, creditors looking for payment must first attempt to collect from the principal debtor. However, the creditor is not required to exhaust all legal remedies against the debtor/obligor before collecting from the surety.
If you would like more information about sureties, creditor’s rights, or need assistance from an attorney, contact Windtberg & Zdancewicz to schedule an initial consultation.
The attorneys at Windtberg & Zdancewicz, PLC, provide Arizona residents and businesses with experienced legal representation in all collection matters. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance with your collection matters, please contact us at (480) 584-5660.