Another guarantor says they paid: check how it affects the demand to you

A payment report changes the question

You face a personal guarantee demand and another guarantor says they have paid the creditor. Obtain reliable details and tell your lawyer promptly. The payment may affect the account, but its amount, allocation and associated terms need checking. Do not assume your demand disappears, and do not continue using an old balance without investigating a payment that may be relevant.

Ask for appropriate supporting information

Through the proper channel, identify the date, amount, recipient and account reference. Preserve any creditor acknowledgement that can lawfully be shared. A transfer screenshot without a clear reference may not show which obligation was addressed. Respect the other person's privacy and advice arrangements rather than demanding unrelated financial records or assuming they can speak for the creditor.

Keep the account trail traceable

Business.gov.au identifies expense and bank records among relevant business records. Ask the creditor or your adviser for a reconciliation connecting the payment to the claimed debt. Keep the original demand and later update together. Do not enter an assumed credit twice or remove a disputed cost simply because the payment amount happens to resemble it.

Source: business.gov.au: Record keeping

Consider a hypothetical limited payment

Imagine a co-guarantor paying an amount under a separate settlement while the creditor continues pursuing the remaining account. The effect on your position depends on the debt, payment and agreement, not just the other person's statement that they are finished. Ask your lawyer what can be established and whether further documents are needed before responding.

Separate account reduction from personal rights

Have the adviser assess the significance for the guarantee and any contribution or reimbursement questions between guarantors. Do not promise to repay the other guarantor or sign a replacement obligation before understanding it. A dispute between guarantors should not obscure an urgent response to a bankruptcy notice or other formal paper already received.

Use the updated evidence in the response

Provide the lawyer with a dated schedule showing the original demand, verified payment and unresolved allocation. Ask what further confirmation or legal step is appropriate. The immediate task is accurate reconciliation of a real payment, not an assumption that everyone is released because one guarantor has reached an arrangement or that the creditor may ignore the payment entirely.