However, thoughts and companions led me to consider the recent history of Turkey, and this made me sick, ending up writing an angry article instead of this one.
I have witnessed some friendships end up in break-up due to unfulfilled financial commitments. A close friend comes and asks for a small favor. All he wants from you is to sign a small paper and become a guarantor for his personal credit agreement with the bank.
Despite all hesitation, if you feel that you must sign the agreement and become a guarantor to your friend then the following information may be helpful.
Joint and several liability of the debtor and guarantor: You will be jointly and severally liable and will be chased by the creditor in the event of default as though you were the original and sole debtor.
Agreement with the debtor: Credit is most of the time extended by a bank or lending institution, and the court seeks a full -- readable and signed -- agreement in the event of a dispute concerning the credit agreement and the limits of liability. I don't advise avoiding signing all pages of the agreement, but if this has happened, you may argue that your liability is limited by reason of an improperly executed agreement.
The lender is free to pursue both parties, debtor and guarantor. The optimal way to avoid the consequences is to locate the assets of the debtor, in which case the bank may seize his assets and release your money. I should underline that going after either the debtor or the guarantor is at the sole discretion of the bank.
Fees, interest and penalties: Read all documents carefully and make sure of the sum -- limit of liability you will be responsible for in the event of non-fulfillment of obligations by the principal debtor.
Being a foreigner and speaking no Turkish may not save you: Months ago, I responded to a question about being a foreign person and becoming a guarantor. “I feel as I am a British citizen and unaware of finance, loans and the legal stuff to go with it that it is totally unfair,” the letter read.
This defense might not be the best idea to submit before a court. I don't say it is useless, but you will be responsible for knowing about the risks you are taking. Please don't count on this possible defense.
To sum up, it is good to make good friends; it is better to make good friends in Turkey, but the best is to retain your friendship. If you are asked to become a guarantor you may do what I do: I evaluate the circumstances; if losing the sum of money is something that I can live with then, I sign it and I never mention it even if I have to pay it. Even this would hurt your relationship, as your friend would not want to see you because he would feel awkward due to his obligations to a friend.
I have my own proverb: “If you don't want to see somebody, just lend him some money, he will quickly disappear.”
To avoid all this unwanted process and loss of a friendship, please explain to your friend that your friendship is valuable to you and that you don't want to take the risk of losing it. This should work better.
NOTE: Berk Çektir is a licensed attorney at law and available to answer questions on the legal aspects of living in Turkey. Send enquiries to b.cektir@todayszaman.com The names of readers are disclosed only upon written approval of the sender.DISCLAIMER: The information provided here is intended to give basic legal information. You should get legal assistance from a licensed attorney at law while conducting legal transactions and not just rely on the information in this corner.
