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Guarantors frequently consider their guarantee terminal. Unfortunately, the courts increasingly agree. The problem, however, is easy to fix. It is all in the wording of the Guarantee paragraph in the contract/lease. There are two ways to deal with this problem.

If you can, clearly state in your contract that it is in effect for the ENTIRE duration of your relationship, even for the Guarantor. State that the Guarantee will extend through any renewal or failure to renew. State that the guarantee will remain in effect regardless of any action taken by anybody for the entire duration of your relationship with the tenant, patient or business.

If your contract is limited in duration, such as in an apartment lease, you need to have the Guarantor sign a separate form stating acceptance of the guarantee lasting for the entire duration of your relationship. This separate form should be dated and witnessed.

You only have to modify your application or create the Guarantee form once. No other work is required. For this small effort, two very good things will happen to your unpaid bills.


More of these bills will be paid without a fight. Clear contract language will often convince the Guarantor or their Attorney to resolve this matter.


You will increase the amount of money collected by your Debt Collection Agency. Guarantors usually have more money. That is why they were required in the first place. Your Debt Collection Agency will be much more successful in collecting your bad debt with your clear, unambiguous guarantee language. 

If the matter goes to court, the Judge will be much more inclined to rule in your favor. The bottom line is you win in your own in house debt collection, when your debt collection agency works on your bad debt and when you have to go to court to collect an unpaid bill.

This means more money for very little extra work. You will do even better if you make sure the Guarantor has the resources to back up the Guarantee, and I will discuss that issue in a future article. For now, keep it simple and easy and enjoy all the extra money.


Executive Credit Management is a full-service Debt Collection and Applicant Screening agency with over 20 years experience located in Central New Jersey. We provide excellent service in the following areas: Employment ScreeningBusiness Screening, and Tenant Screening. Executive Credit Management belongs to a number of Skip Tracing databases and offers services to help locate and confirm the current address of missing debtors. Other services provided are: litigation evaluation on all lawsuit decisions, improvement of the quality of the applicant data, Lawsuit Monitoring, Handling of Debtor Disputes. Executive Credit Management features the best Call Monitoring System in the Debt Collection industry.