Guarantees and Endorsements

Liability for the Debts of a Company or Another Person

Have you acted as a guarantor or taken out a loan for a business or individual that has since gone bankrupt or stopped paying its debts? Rest assured: there are legal and accessible solutions available for you as well.

Contrary to popular belief, the bankruptcy or debt settlement of the principal debtor—whether a business or a relative—does not automatically release the guarantor or endorser from liability. The creditor retains the right to claim the balance of the debt directly from you, even if the company or individual for whom you acted as guarantor has already been released from its obligations.

Have you already been contacted by a creditor? It’s not too late to take action.
Proceedings under the Bankruptcy and Insolvency Act can suspend most collection actions taken against you personally.

This includes :

• Wage garnishment
• Garnishment of Your Bank Account
• Lawsuits and Debt Collection Claims
• The seizure of certain movable or immovable property
• Registration of Rights to Your Primary Residence

Whether you have co-signed a business loan, guaranteed a line of credit, or guaranteed a relative’s debt, BRESSE’s advisors are here to clearly explain your rights and available options.