Being a guarantor or co-debtor in Colombia: these are the risks and consequences
Being a guarantor or co-debtor in Colombia is a common practice in lease agreements, bank loans, and commercial agreements.
TL;DR
- Being a guarantor or co-debtor in Colombia is common in leases, bank loans, and commercial deals.
- A guarantor backs the debt if the primary debtor defaults, while a co-debtor has a direct obligation.
- Risks include damage to credit history, potential seizure of assets, and reduced borrowing capacity.
- Co-debtors face greater risk due to solidarity, allowing creditors to demand full payment directly.
- Signing as a guarantor or co-debtor creates a legally binding obligation.
- These obligations persist until the debt is fully paid or formally substituted.
- Financial instability can result if the debtor defaults and you must cover the debt with your own resources.