Supreme Court held creditor's right against guarantor extinguished if creditor failed to monitor principal debtor's bankruptcy proceedings.

The Supreme Court dismissed the guarantor's claim, ruling that the creditor lost the right to pursue them after failing to monitor the principal debtor's bankruptcy proceedings. The guarantor argued that the creditor's inaction should not automatically extinguish their liability, but the court found the creditor's duty to monitor was critical under the guarantee statute. Consequently, the court determined that the creditor's failure to act within the statutory timeframe resulted in the loss of their claim against the guarantor.