What is a guarantor?

A guarantor is a person or company that takes responsibility for another person or company’s debt. In the context of debtor and creditor law in Florida, a guarantor is an individual or business entity that guarantees to pay a debt of another if that person or business entity fails to pay. A guarantor assumes responsibility for the payment of the debt and is generally held to the same obligation as the debtor. This means that in the event of payment default, the creditor can seek payment from the guarantor in the same way as they could seek payment from the debtor. The guarantor is typically a friend or family member of the debtor but can also be a company or financial institution. The creditor usually requires the guarantor to sign a document agreeing to pay the debt should the primary debtor fail to pay. This document is called a “guaranty agreement”. In Florida, the debtor is responsible for the payment of the debt regardless of whether or not a guarantor was involved. The guarantor, however, will usually be liable for the debt in the event the debtor fails to pay. For this reason, a guarantor should always read and understand the guaranty agreement before signing it.

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What is a guarantor?

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