Question

A creditor can go after a third party who has agreed in contract to co-signed on the debts of a debtor if that third party refuses to pay, even if the debtor is able to pay off the debt.

Answer 1

A creditor can pursue a third party cosigner for payment even if the original debtor could pay off the debt.

Step-by-step explanation:

A cosigner is another person or firm who legally pledges to repay some or all of the money on a loan if the original borrower does not. In the case mentioned, if the third party cosigner refuses to pay off the debt, the creditor can go after them for payment, even if the original debtor is able to pay. This is because the cosigner has agreed in the contract to be responsible for the debt if the borrower defaults.