Can a surety be released by the prejudicial conduct of a creditor?
14 July 2017
I agreed to stand surety for my brother-in-law in one of his business deals. He however failed to meet his... obligations and the creditor sold off his beach house on an execution sale. However, the house was sold in my view for far less than it was worth and now there is a shortfall which the creditor wants me to stand in for. If they had sold his house for its full value, there wouldn’t be a shortfall. Surely I can’t be held responsible for the shortfall?