In cases where the insolvent is primarily liable for a claim proved against his estate, a discharge of that liability, by the creditor accepting a dividend under this act, shall not operate to release or discharge any person secondarily liable for the same debt, contract, engagement or other liability, if the participating creditor shall have given such third party written notice and an opportunity to purchase the claim and subrogate himself to the rights of such creditor; but, in that event, such secondary liability shall remain, in like manner as if such discharge had not taken place; but, if the creditor does not give such notice, the discharge of the insolvent from primary liability shall also operate to discharge from liability the party secondarily liable.