Credit Inc. lends $10,000 to Dace. Egan acts as Dace's surety. When the loan becomes due, Egan pays it in full. As a consequence, the surety gets

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When a surety pays off a debt on behalf of the debtor, the surety is subrogated to the position of the creditor. This means the surety acquires all the rights the creditor had against the debtor, including rights in bankruptcy, rights to collateral, and rights to judgments obtained by the creditor.