To write off the debt?
One story took place in Noyabrsk City, Russia. Noyabrsk Bank and a citizen signed a credit contract according to which the bank was to give 90 000 RUR under 19% yearly interest rate. The customer was obliged to pay off the credit in equal parts on the monthly basis during the following 3 years.
Sergey (the debtor) spent the money quickly, divorced his wife and in two months refused to pay off his credit. Bank asked the debtor and his guarantors to fulfill their obligations on free will, but vainly. Thus, the issue was taken to court. “You see, - explained Sergey everything to the judge, - I do not agree with the suit. I don’t work right now and I have no funds to pay off the credit, thus the contract should be considered invalid and the debt should be written off.” The guarantors refused to pay as well, saying this is not their business, but Sergey’s.
However, the Law has another opinion. If you agreed to be a guarantor by having signed the contract, so please be so kind as to fulfill all the obligations. The court decided that the debtor and his guarantors have to pay off 77 252 RUR (remaining debt, penalty provision and court costs). As the defendant did not work at the moment of announcing a verdict, it must be guarantors who were held responsible.