Final answer:
The best remedy for a surety to collect from a debtor after paying off the latter's debt is subrogation, as it allows the surety to use the creditor's rights against the debtor.
Step-by-step explanation:
When a principal debtor defaults and a surety pays the creditor the entire obligation, the most effective remedy for the surety to recover from the debtor is subrogation. Subrogation allows the surety to 'step into the shoes' of the creditor and use the same rights the creditor had against the debtor to collect the debt. This can include using collateral that was pledged by the debtor, enforcing security interests, or initiating legal actions if necessary. In contrast to reliance on personal promises of repayment, subrogation is backed by legal processes and security interests that can provide a more guaranteed method of recovery for the surety.
The surety has the right to be reimbursed by the debtor for the amount paid to the creditor, and this can be done through subrogation after the surety has fulfilled their payment obligation. By using this remedy, the surety assumes the creditor's rights and can pursue the debtor for the debt, making it the best method for the surety to attempt to recoup the funds provided to settle the obligation with the creditor.