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Crash999

Obligations of Thai Guarantors in the event of death of the debtor

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My Thai father-in-law was a guarantor on a loan several years back. I don’t have all details but the story is that the debtor died. His wife received an insurance payout and spent it, or at least says she spent it. 
 

Now the company who issued the loan is going after my father-in-law, having called him to tell him he must adopt the debt and sending people to his house to take pictures of the house and car. 
 

Does anyone know what the guarantor obligations are here? I found an article saying that the law changed a few years ago to ban any debt provision that gave the guarantor equal obligation to the debtor. But aside from that I can’t find any specifics. 
 

Thank you. 

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Guarantor means exactly that but even more so here from the bit I have seen🤔

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If the debtor dies, then occupancy of the property usually passes on to an heir.   If the heir wishes to continue occupancy, and eventually achieve ownership, then he/she must continue paying monthly payments on the debt.   Or - the Guarantor can make the payments, on behalf of the new occupant. 

 

In no case does a Guarantor risk losing anything, unless he/she is the heir.  All that a property owner can do if payments stop coming in on behalf of an occupant is to foreclose on the property, and evict the current occupant. 

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If the loan is collateralized the bank will reposes the house, car, whatever and sell it with the guarantor liable for the remainder of the debt. If they sell it for more than the loan amount typically they will keep that for expenses and service charges. 

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