What is a codbetor and what responsibilities does it have in a credit contract

In the process of obtaining a loan, whether it is a mortgage loan, a car loan or a loan of personal needs, financial institutions can request the presence of a debtor. It has an important role in guaranteeing the reimbursement of the loan. But what does it mean to be a co -debtor and what are the responsibilities associated with the state of Co -debtor?

What is a codbetor?

A codbetor is a person who assumes the obligation to repay a loan for individuals, together with the main debtor. It is a contractual party in the loan agreement and, if the main debtor cannot or do not want to pay its rates, the codebit becomes responsible for the complete payment of the debt.

The co -debtor should not be confused with the guarantor (guarantees), because his role is more extensive. Unlike a guarantor, which intervenes only if all the other reimbursement options are exhausted, the co -debtor is treated by the credit institution as an additional debtor, with the same obligations as the main applicant.

The responsibilities of a co -debtor

If you decide to become a co -debtor for someone, it is important to understand all the responsibilities associated with this commitment:

Responsibility of solidarity for credit

The co -debtor is as responsible as the main owner for the payment of monthly rates. If the Data Controller does not fulfill his payment obligations, the bank will ask the Codbitor to pay the outstanding amount.

Impact on credit score

Being part of the credit contract, the loan payments chronology will affect the credit score of the code. If payments are made in time, this can have a positive impact on the credit score. On the other hand, delays or non -payment of rates can adversely affect the codberemitity.

Limit the ability to debt

If the code of code wishes to access a personal credit, the financial institutions take into consideration its existing financial commitments, including the loan for which it is a co -debtor. This can reduce the amount it can borrow alone.

The risk of forced execution

If the main debtor does not pay its obligations and the CO -debtor cannot cover the debt, the credit institution can resort to extreme measures, such as the forced execution of Codberent goods for the recovery of suspended amounts.

Obligation to comply with the terms of the contract

The co -debtor must be aware of all contractual clauses and accept the terms of the loan. This means that any modification of the contract (such as a refinancing or a debt renovation) will also require the approval of the code.

The advantages and disadvantages of being a tailor

Although it may seem a way to help someone get a loan, the state of codebitation involves both beneficial and risk.

The advantages of the code

• It allows a close person to get a loan that otherwise could not access;
• Contributes to the strengthening of the relationship of trust between the co -debtor and the main debtor;
• It can have a positive impact on the history of the credit if the rates are paid in time.

The disadvantages of the code

• High risk of financial liability if the main debtor does not pay the credit;
• The possibility of affecting the score at the credit office, in case of payment delays;
• Limit the access of the codebitation to your future loans;
• The risk of becoming the subject of the procedures for the collection of debt or forced execution.

How to protect you if you are a co -debtor?

If you are a co -debtor on a loan, you have the same legal obligations as the main debtor. This means that if it can no longer pay its rates, the creditor can follow you for the entire debt. Here are some strategies to protect you:

Understand the risks before signing

Read the credit contract carefully and check exactly what responsibilities you have. Make sure to understand the clauses regarding the penalties, interests and rights of the creditor in case of non -payment.

Negotiate a limitation of responsibility

Sometimes, contracts can be negotiated in such a way as to respond only part of the amount, not for the entire debt. It is possible to request the inclusion of a programmer clause based on a number of payments made by the time by the main debtor.

Conclude an insurance policy

Some credits allow you to attach an insurance for life or unemployment for the main debtor, so that the debt is paid in case of unexpected events.

Monitor payments

Ask the creditor to inform you in case of payment delays. Check the loan situation monthly to make sure the rates are paid in time.

Make sure the main debtor can pay

Discuss with the main debtor on his reimbursement plan and financial safety. Try to have a written understanding between you on how you will be compensated if you can pay in its place.

Request the release from the contract

If the financial situation of the main debtor has improved, it is possible to negotiate with the bank that replaces your replacement with another co -debtor or your complete elimination from the contract.

Keep a backup background

If the main debtor does not pay, you will be responsible. It is good to have a background for such situations.

Avoid working as a co -debtor if you are not sure

If you do not trust the payment capacity of the main debtor, it is better that you refuse to become a co -debtor.

Becoming codebiting is a serious commitment that can have a remarkable impact on your financial stability. Although it may be a support gesture for a friend or family member, it is essential to fully understand the associated responsibilities and risks. Before signing this contract, carefully analyze all implications and take protective measures to avoid long -term financial problems.