A creditor's surrender of collateral to a debtor without the guarantor's consent can reduce the guarantor's obligation.

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If a creditor surrenders collateral to a debtor without the guarantor's consent, it can release the guarantor from their obligation to the extent that the value of the collateral exceeded the debt. This is known as a "release of collateral doctrine." However, the guarantor's obligation may still be reduced by less than the full value of the surrendered collateral if the value of the collateral was insufficient to cover the entire debt.

A Creditor's Surrender of Collateral to a Debtor Without the Guarantor's