A surety cannot assert the principal debtor's bankruptcy as a defense to avoid liability on the debtor's obligation.

Question

Quizplus · Accepted Answer

A surety is liable for the debt of the principal debtor even if the debtor becomes bankrupt. The surety has promised to pay the debt in case the debtor fails to do so, and the surety's obligation is independent of the debtor's financial situation. Therefore, the surety cannot use the debtor's bankruptcy as a defense to avoid paying the debt.

A Surety Cannot Assert the Principal Debtor's Bankruptcy as a Defense