Prejudgement remedies
• Attachment(-> Debtor)
• Garnishment(-> 3rd Party)
• Exemption(To Homestead Exemption)
  • secured debtor(mortgage lien)
  • IRS tax lien

Creation of Surety

Elements of Contract		Original contract	Suretyship
Formation	Agreement	Required	Required
	Consideration	Required	Required
Validity	Reality of consent	Required	Required
	Capacity	Not Required	Required
	Legality	Required	Required
Enforceability	Statue of Frauds	Required	Required

	Surety	Guarantor of payment	Guarantor of collection
Liabilities	Primary Liable	Secondary Liable	Secondary Liable
Notice debtor's default	Not Required	Required	Required
Action against debtor	Not Required	Not Required	Required

Termination of Suretyship

Discharge of contract	Termination of suretyship
	Termination by debt of original contract
Modificatioin of original contract

Discharge of Contract

Elements		Original Contract
By performance		Yes
By operation of law	Death	No
	Incapacity	No
	Bankruptcy	.No
	Illegality	Yes

Modification of original contract

	Favorable to surety	Unfavorable to Surety
		Material	Immaterial
Compensated Surety	Not discharge	Discharge	Reduction
Uncompensated Surety	Not discharge	Discharge	Discharge

Indemnity	From debtor	After payment
Contribution	From co-surety	After payment
Exoneration	To debtor	Before payment
Subrogation	From creditor From debtor	After payment

Surety's Defence

			Original Contract	Suretyship
Contractual defence	Formation	Agreement	Yes	Yes
		Consideration	Yes	Yes
	Validity	Reality of consent	Yes	Yes
		Capacity	No	Yes
		Legality	Yes	Yes
	Enforceability	Statute of frauds	Yes	Yes
Personal defense		Insolvency	No	Yes
		Bankruptcy	No	Yes

		Dollar amount of contribution 
		required of co-surety =

		Dollar amount of liability paid upon 
		default of debt * 

		Dollar amount of liability assumed by co-surety
		Total dollar amount of liability assumed by all co-sureties