Galway Bay fm newsroom - A High Court judge is warning people to ask a number of questions if they are asked to become a guarantor on loans.
He made the remarks in a case taken by AIB for summary judgment against Headford woman Mary Geraghty over business guarantees she provided for her former partner.
Judge Max Barrett referred to 'emotionally transmitted debt', which can destroy relationships and families.
According to today's Irish Independent, the High Court heard that Mary Geraghty was a co-director with her then partner James Kearney of Ballinasloe in Rostaff Property Development Limited with an address at Clonberne Enterprise Centre.
Judgment has already been obtained against James Kearney and the company.
Hairdresser, Mary Geraghty began a romantic relationship with James Kearney in 1996 and he subsequently moved into her home.
He started up his own construction company and gave her a 49 per cent interest as unpaid company secretary after she invested 17 and a half thousand euro.
Six months later James Kearney took full control of the company.
By 2001, the company was not doing well and Ms. Geraghty received phone calls from Revenue Sheriff bailiffs and creditors looking for money.
In 2009 and 2012, Mary Geraghty signed documents guaranteeing all money at any time owing to AIB.
In 2013, James Kearney left their home and ended the relationship.
He later returned and asked her to sign over her shares, which she did.
Justice Max Barrett told the court that providing a guarantee for a loved one is common and is "effectively taking a gamble that all will go well."
He added that anyone asked to be a guarantor to a loved one should ask a series of questions before signing anything.
The proceedings by AIB against Mary Geraghty from Headford stand adjourned.
