Question

How do the themes of reasonableness and fairness play out in the rights and defenses of the Principal, Surety and Creditor in a credit transaction? When it comes to protecting rights in a credit transaction, whose rights should take precedence? Does this change once a creditor declares bankruptcy?

Answer 1

The surety and creditor have right to recover the amount due from debtors , the surety can recover the amount from debtor In case of he has given the guarantee to creditor and debtor have not paid the amount to creditor,and surety have right to recover such amount from debtor,

When it comes to protecting the rights,the rights of creditor should be precedence as he has first right to recover such amount from debtor, and then surety has right to recover such amount from debtor,

However once creditor have declared bankruptcy, the right of Creditor will change as authorised person(appointed by court) can recover such amount from debtor and creditor lose his right to recover such amount..