When a surety or guarantor pays a debt owed to a creditor, he or she acquires any right that the creditor had against the debtor.

Name: When a surety or guarantor pays a debt owed to a creditor, he or she acquires any right that the creditor had against the debtor.
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This is known as the principle of subrogation in which the surety or guarantor steps into the shoes of the creditor and acquires any right that the creditor had against the debtor.

When a Surety or Guarantor Pays a Debt Owed to a Creditor