Lufa case [2024] 136
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Brief facts of the case
Old Tang and Little Tang are father and son. Lao Tang had borrowed 500,000 yuan from a bank before his death, and Zhang, as one of the guarantors, provided joint and several liability guarantee for the loan. After the loan expired, Lao Tang failed to fulfill the repayment obligation as agreed, and Zhang, as the guarantor, repaid 16,500 yuan to the bank. Subsequently, Lao Tang died of illness, and Zhang sued Xiao Tang for repayment responsibility. Xiao Tang said that he did not know about the loan involved in the case.
Heard by the courts
After trial, the court held that Zhang, as the guarantor, had the right to recover from the borrower Lao Tang within the scope of the guarantee liability. After the death of Lao Tang, Xiao Tang, as the first-order heir of Lao Tang, did not give up the inheritance of Lao Tang's estate, and should be regarded as inheriting Lao Tang's estate, and should bear the liability for the compensation of 16,500 yuan within the scope of his inheritance of Lao Tang's estate.
What the judge said
After the death of the debtor, the debtor's heirs are not automatically obligated to repay, and if the heirs give up the inheritance or have no inheritance to inherit, they may not be liable for the debts of the decedent; If the debtor has an estate and is inherited, the heirs need to pay the debt within the actual value of the estate.
Links to legal provisions
Article 700 of the Civil Code of the People's Republic of ChinaAfter the guarantor assumes the guarantee liability, unless otherwise agreed by the parties, it has the right to recover from the debtor within the scope of the guarantee liability and enjoy the rights of the creditor against the debtor, but shall not harm the interests of the creditor.
Article 1124, Paragraph 1 of the Civil Code of the People's Republic of ChinaAfter the commencement of inheritance, if the heir renounces the inheritance, he shall make an expression of renunciation of the inheritance in writing before the estate is disposed of; If there is no indication, it shall be deemed to have accepted the inheritance.
Article 1127 of the Civil Code of the People's Republic of ChinaThe estate is inherited in the following order: (1) the first order: spouse, children, parents; (2) Second order: siblings, grandparents, maternal grandparents. After the inheritance begins, it is inherited by the first-order heirs, and the second-order heirs do not inherit; If there is no first-order heir, the second-order heir shall inherit. ......
Article 1161 of the Civil Code of the People's Republic of ChinaThe heirs shall pay off the taxes and debts that the deceased shall pay in accordance with the law to the extent of the actual value of the inheritance. The part exceeding the actual value of the estate shall not be subject to voluntary repayment by the heirs. If the heir renounces the inheritance, he or she shall not be liable for the taxes and debts that the decedent shall pay in accordance with the law. **Heze Intermediate Court.