Claims and debts attorney, if a discharge decision is made, is the debt guarantor's debt also discharged?

Hello. A claims and debts attorney will answer.

Even if you have received a discharge decision through personal bankruptcy, the guarantor's debt is not discharged along with it.

In personal bankruptcy, the discharge takes effect only with respect to the individual debtor who applied, and the effect of the discharge does not extend to a guarantor or a joint debtor.

In other words, if you have received a discharge, your obligation to repay the debt you bore disappears, but the guarantor who guaranteed that debt still has an obligation to repay it.

For example, if A is the debtor and B is the guarantor of that debt, and A has received bankruptcy and discharge, the creditor can no longer demand the debt from A, but can claim the full amount from B as the guarantor.

This structure exists because a guarantee obligation is recognized as an independent obligation. Therefore, even if the debtor has been through bankruptcy and discharge, the guarantor bears liability separately.

If the guarantor is also in a situation where repayment is difficult, the guarantor too should separately consider individual rehabilitation or bankruptcy proceedings.

We recommend consulting a claims and debts attorney and preparing additional response measures.