Can a guarantor sue a discharged bankrupt for money paid to creditors on behalf of the bankrupt following the bankruptcy?
May 2nd, 2006 by Questions
I signed as guarantor of a loan for a friend. He declared bankruptcy in June 2003, and was thereby protected from his creditors. I did not. One of his creditors obtained a court order and was thereby able to garnish my wages. In that way, I paid off the entire debt by 2005. Assume that my friend was discharged by 2004.
Can I now take court action against my friend to recover the amount I paid out on his behalf?