Legal Question in Business Law in New York

Loan not repaid and unconditionally guaranteed

My former friend is an office manager

for the company where I worked.

The company was in financial trouble

and he begged me to lend them

$60,000, which I eventually did. It's

now been almost a year since the

loan was due, and I haven't been

paid yet. I'm now suing the company

and my ex-friend for the money that

is owed me. In the contract which he

signed on behalf of the company, he

says that he ''unconditionally

guarantees all the obligations of the

Borrower.'' Does this guarantee

mean that he is obligated to pay me

out of his own pocket if the company

is not able to pay me back?


Asked on 7/04/07, 10:41 pm

2 Answers from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: Loan not repaid and unconditionally guaranteed

Yep. That was a Good Clause for you to put in.

Remember, though, that unsecured debt like this can be discharged in bankruptcy. Be reasonable in your demand for payment (i.e., let him pay you over time if he needs to do so) or your ex-friend may just end up in bankruptcy court and you will be standing in line with his/the company's other creditors, unpaid.

Good luck.

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Answered on 7/05/07, 2:59 am
Johm Smith tom's

Re: Loan not repaid and unconditionally guaranteed

Very good suggestions by Ms. Delain.

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Answered on 7/05/07, 7:39 pm


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