If your business is taking on debt, and you sign a personal guarantee, it absolutely can affect you. You can be behind on your debt and never pay your debt, or try to make payment arrangements on your debt and still never be able to pay your debt off.
Personal Guarantee — The Definition
At the end of the day, what does a personal guarantee mean? It means that you personally promise that you're going to resolve this debt. In other words, you're on the hook for the debt for your business.
Falling Behind on Debt Payments? Talk to an Attorney to Learn Your Options
If you find yourself in a situation where your business no longer can make the payments, and you don't know how you're going to get out of that situation, seek help from a knowledgeable attorney. If you're worried that personal guarantees may result in your credit being damaged, personal assets seized, wages garnished, or other concerns, seek help from a knowledgeable attorney.
Business bankruptcy may be a viable option for you to restructure your debt and get squared away on a more manageable repayment plan. However, if you're not careful, business bankruptcy could affect your personal assets, so it's best to consult an experienced attorney for help navigating the filing process.
Every situation is unique. If you have questions, contact our office. We'd love to help you.
The material and information contained on this website is for general information purposes only. You should speak with an experienced attorney in your area before making any legal decisions.
