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Law firm for surety law
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CDR Legal is your reliable partner in all matters relating to surety law. We represent both guarantors and creditors and help you to enforce your rights or fend off unjustified claims. Whether you need to review a surety declaration, defend against payment claims or contest immoral sureties - we offer you clear, comprehensible advice and a well thought-out strategy to protect your financial security.
Guarantee: fending off unjustified claims
Guarantees are widespread, but can entail considerable financial risks. Many guarantors sign the commitment without being aware of the legal consequences. Guarantees are often given in a family or business environment for emotional reasons – with serious consequences if the principal debtor is unable to pay.
We support you in protecting your rights as a guarantor or enforcing justified claims as a creditor. Even if you wish to release yourself from an existing surety or have a check carried out to determine whether a surety is immoral, we can provide you with sound legal expertise. Rely on our experience to minimize financial risks and find an economically viable solution.
"At CDR Legal, we place particular emphasis on personalised legal support, transparency and a relationship of trust with our clients."
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Your contact: Attorney Corinna Ruppel
Attorney Corinna Ruppel advises private individuals and business owners on matters concerning guarantees, joint liabilities, and risk exposure toward banks. With her long-standing experience in banking law and her previous position as an in-house counsel, she understands contract structures from the lender’s perspective. She carefully reviews contracts, explains complex clauses in plain language, and develops tailored strategies to avoid unfair or excessive liabilities.
Clients' experiences with us
Guarantee law: Legal classification and options for action
CDR Legal supports you with comprehensive expertise in surety law and offers a free initial consultation. Especially when it comes to the liability of a guarantor and the legal consequences associated with a declaration of surety, competent support is essential. As a specialized law firm with many years of experience, CDR Legal helps you to enforce or defend against claims and shows you the best possible way forward in your individual situation.
Legal classification and technical explanations
Guarantee law is anchored in the German Civil Code (BGB) and regulates the obligation of a guarantor to vouch for the payment or performance of a principal debtor. You can find detailed information on this in our overview of the requirements for a guarantee. There you can find out more about the necessary formalities and other legal requirements. A legally effective contract design is crucial in order to be able to argue on a secure basis in the event of a dispute.
A look at the different types of surety shows that there are other variants in addition to the directly enforceable surety and the indemnity bond. These different forms each have their own advantages and disadvantages. Both creditors and guarantors should carefully examine the risks and legal consequences that may arise in individual cases before signing a guarantee declaration.
The question of immorality is also of central importance. A guarantee may be invalid due to immorality, especially if the guarantor was pressured into signing due to an emotional bond or economic dependency. For more information on the conditions that play a role here, take a look at the topic of guarantees and immorality. In more complex cases, for example in the case of internal company interdependencies, a guarantee provided by a GmbH shareholder must always be carefully examined to determine whether it is contrary to common decency.
Practical recommendations for action
Anyone entering into a guarantee relationship as a guarantor or creditor should first have all the relevant documents in a complete and comprehensible form. It is also essential to check the financial capacity of the guarantor and the principal debt in order to avoid long-term conflicts. It is also advisable to communicate deadlines clearly and provide clear evidence of the principal debt.
If it turns out that a guarantee was concluded without due consideration or that personal and financial circumstances have changed significantly, revocation is conceivable in some cases. Find out more about the revocation options and check which legal provisions apply to your individual case. In addition, there may also be options to terminate a guarantee in certain constellations, for example if the contractual terms and conditions provide for this or if the essential basis of the guarantee relationship changes.
Particularly in personal crisis situations, such as a separation or divorce, the need may arise to be released from a guarantee. The specific steps that need to be taken in order for a release from the obligation to be possible at all can be considered, among other things, in connection with the termination of a guarantee in the event of separation. There you will find information on how you can protect yourself legally in order to minimize financial risks.
Practical examples and lists
The complexity of guarantee law often only becomes clear in practice, for example when various factors interact. A particularly common scenario is the insolvency of the main debtor. The question then arises as to how creditors can demand payment from the guarantor and what rights the guarantor is entitled to. An article on guarantees and insolvency proceedings provides specific insights into this. Some exemplary conflict situations could be
- Conclusion of a guarantee without taking into account the financial capacity of the guarantor.
- Increasing or changed liabilities of the principal debtor that significantly increase the guarantor’s liability.
- Separation or divorce where one spouse secured the credit agreement of the other.
- Internal company disputes if a shareholder only signs a guarantee under pressure.
- Insolvency of the principal debtor, whereby creditors can make claims directly against the guarantor.
All these examples illustrate that surety law can have considerable financial and personal consequences for all parties involved. An early and comprehensive review of the respective contractual constellation is therefore crucial. CDR Legal supports you in such cases with empathy and legal precision so that you can protect your rights and assess the risks in the best possible way.
How CDR Legal can help you
Contact us now to arrange your free initial consultation and benefit from the experience of our lawyers. We work empathetically, competently and transparently and only take on cases with a realistic chance of success. You receive a full cost overview before each service and benefit from our many years of experience.
- Free initial assessment: We analyze your situation, inform you of possible courses of action and any costs incurred – transparently and usually within two working days.
- Free inquiry with your legal expenses insurance: If you wish, we can submit a cover request for you.
- Make an informed decision: With CDR Legal, you are in the right hands and enjoy personal, competent representation.
F.A.Q.
What is a guarantee in legal terms?
A guarantee is the obligation to assume responsibility for another person’s debt. The guarantor is liable to the creditor if the principal debtor fails to meet their payment obligations.
What types of guarantees exist?
Common forms include the suretyship guarantee and the default guarantee. They differ in when the creditor can hold the guarantor liable – immediately or only after unsuccessful enforcement against the debtor.
When can a guarantee be considered immoral or invalid?
A guarantee is considered invalid if the guarantor was pressured to sign due to emotional ties, economic dependence, or coercion. In such cases, the guarantee may be unenforceable.
Can a guarantee be revoked or terminated?
Revocation is only possible in exceptional cases, such as incorrect disclosure or specific contractual clauses. Termination may be possible if the contractual or economic conditions change significantly.
What happens if the principal debtor becomes insolvent?
If the principal debtor is insolvent, the creditor can directly hold the guarantor liable. The guarantor then has the right to seek reimbursement from the debtor.
What risks do guarantors face?
Guarantors are generally liable with their entire assets. Without careful assessment of the debtor’s financial situation or contract terms, this liability can become financially threatening.
How can CDR Legal assist in guarantee law matters?
CDR Legal reviews your guarantee agreement, evaluates risks and chances of success, and identifies ways to limit liability. In a free initial consultation, you receive a transparent and realistic assessment of your case.
Initial Consultation with CDR Legal
Simply fill out the following contact form and we will respond promptly to schedule your initial consultation.