What is someone who legally agrees to take responsibility for a person's debt if they Cannot repay it?

Asked by: Margret Nader  |  Last update: March 23, 2025
Score: 4.8/5 (4 votes)

A co-signer is someone who agrees to take legal responsibility for a borrower's debt, should the borrower fail to pay back what they owe as agreed. Guarantors, like co-signers, agree to cover a borrower's debt if they fail to pay what they owe.

What is a person who legally agrees to take responsibility for a person's debt if they Cannot repay it?

A cosigner is not the main borrower. When you cosign a loan, you agree to be responsible for someone else's debt. If the main borrower misses payments, you must make the payments. If the main borrower misses payments or stops making payments (also called defaulting), you must repay the loan.

What is a person who is unable to repay a debt?

Bankruptcy is a settlement of the debts of someone who is unable to repay their debts.

What do we call a person who can not repay debts?

Insolvent is a person who has no money to pay off his debts.

What is the 777 rule with debt collectors?

Specifically, the rule states that a debt collector cannot: Make more than seven calls within a seven-day period to a consumer regarding a specific debt. Call a consumer within seven days after having a telephone conversation about that debt.

WHO IS RESPONSIBLE FOR A DECEASED PERSON'S DEBT?

16 related questions found

What is the 11 word phrase to stop debt collectors?

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.

What are 2 things that debt collectors are not allowed to do?

Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.

What is a person unable to pay their debts called?

The one who is unable to pay one's debt is bankrupt or insolvent. (

What is the inability to repay debt?

If you can't pay your debts, you may be considering bankruptcy, or an alternative to bankruptcy called a 'debt agreement'. These are formal legal options available under the Bankruptcy Act 1966. While these formal options may free you from debt, they will have serious long-term consequences.

What do you call someone who doesn't pay back their debts?

delinquent. unaffluent. without a shot in one's locker.

What's the worst a debt collector can do?

Debt collectors are not permitted to try to publicly shame you into paying money that you may or may not owe. In fact, they're not even allowed to contact you by postcard. They cannot publish the names of people who owe money. They can't even discuss the matter with anyone other than you, your spouse, or your attorney.

What is the word of one who cannot pay his debt?

Insolvent.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/insolvent.

What is the statute barred rule?

What does 'statute-barred' mean? If a debt is barred under statute, it means that by law (the Limitation Act), the lender has run out of time to use certain types of action to try and make you pay the debt. Statute-barred does not mean the debt no longer exists.

What is a person who agrees to be responsible for a debt if the main applicant does not repay?

Co-signer. This is a person who signs the promissory note with the borrower and promises to repay the loan if the borrower does not. Both the co-signer and the borrower are responsible to repay the loan. Some loans require a co-signer and some don't.

Who is the person to whom an obligation is owed?

A creditor is someone (or an entity) to whom an obligation is owed. Most commonly, the obligation owed is an obligation to pay money for some prior services or to pay off a loan. The person who owes a creditor an obligation is known as a debtor.

What is the one word substitution for a person who is unable to pay his debt?

A person or firm whose liabilities exceed the value of owned assets is termed as insolvent.

What if a person is unable to pay debt?

Legal action

Under section 138 of the Negotiable Instruments Act 1881, the lender has the prerogative to file a case against you in court and demand their money back. Also, if you identify as a wilful defaulter, the lender can press criminal charges under sections 403 and 415 of the IPC, 1860 against you.

What is a legal declaration of your inability to pay your debt?

Bankruptcy is a legal proceeding initiated when a person or business cannot repay outstanding debts or obligations. It offers a fresh start for people who can no longer afford to pay their bills.

What is it called when you are incapable of paying debts?

Insolvent- unable to pay debts owed. Corrupt- having or showing a willingness to act dishonestly in return for money or personal gain.

What is the inability to pay one's debts?

Insolvency is a state of financial distress in which a person or business is unable to pay their debts. Insolvency is when liabilities are greater than the value of the company, or when a debtor cannot pay the debts they owe. A company can become insolvent due to a number of situations that lead to poor cash flow.

What is a person who takes debt called?

Who Is a Debtor and Who Is a Creditor? Debtors and creditors can be individuals or businesses. Individuals and companies are typically debtors who borrow money from banks or other financial institutions. Creditors can be any individual or company but they're often banks.

What do you call someone who never pays for anything?

Names or nicknames for a person who doesn't pay his bills: DEADBEAT.

How to legally beat debt collectors?

Here are a few suggestions that might work in your favor:
  1. Write a letter disputing the debt. You have 30 days after receiving a collection notice to dispute a debt in writing. ...
  2. Dispute the debt on your credit reports. ...
  3. Lodge a complaint. ...
  4. Respond to a lawsuit. ...
  5. Hire an attorney.

What two debts Cannot be erased?

Perhaps the most common debts that cannot be discharged under any circumstances are child support, back taxes, and alimony. Here are some of the most common categories of non-dischargeable debt: Debts that you left off your bankruptcy petition, unless the creditor had knowledge of your filing. Many types of taxes.

What is the 15 USC 1692 Fair Debt Collection Act?

The Fair Debt Collection Practices Act (FDCPA) (15 USC 1692 et seq.), which became effective in March 1978, was designed to eliminate abusive, deceptive, and unfair debt collection practices.