Surety

A Surety one who is directly liable for the debt or obligation of another surety, surety bond or guaranty, in finance, is a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults. The person or company that provides this promise, is also known as a surety or guarantor.


The Parties the creditor (lender), the principal (debtor), the surety


Gratuitous Surety Not Compensated (any variation of surety's risk releases surety)

Compensated Surety Compensated (material change increasing risk releases surety)


Exoneration Exoneration occurs when a person who has been convicted of a crime is later proved to have been innocent of that crime.


Subrogation Subrogation is the legal doctrine whereby one person takes over the rights or remedies of another against a third party enforcement of creditor's right against principal. after having paid the principal's obligation, the surety steps into the shoes of the lender and may enforce any rights that the creditor had against the principal.


Judicial Lien
if a debtor is adjudged to owe a creditor money and the judgement has gone unsatisfied, the creditor can request the court to impose a lien on specific property owned and possessed by the debtor.

Garnishment debtor has propetty in the hands of a third party (wages, money in bank accounts, debts owed to the debtor)



Fair Debt Collection Practices Act (FDCPA)
curbs abuses by collection agencies in collecting consumer debts. the Act does not apply to a creditor attempting to collect its own debts