Legal Question in Business Law in Florida

Re: Personal Guarantee

The short answer is "no". The personal guarantee expires or becomes of no force and effect pursuant to the terms of the written instrument signed by the personal guarantor. Of course, if the other party wishes to waive or terminate the personal guarantee, it may do so, but why would that party agree to get rid of a personal guaranty if it has no legal obligation to do so. It is unlikely that the other party will relinquish the additional security a personal guarantee provides or give up the benefit of having another pocket to go after in case of a default. Good luck.

Re: Personal Guarantee

Your sole option is to have them waive the guarantee, in writing. Perhaps, the assurance of your future business with them would bring a favorable response.

Re: Personal Guarantee

Once signed it will be difficult to remove the personal guarantees. However, moving forward depending on the type of business you are involved in, it is always best to negotiate that the company is solvent, show its good credit history and state that you want to do business with companies that will only require the promise of the company and not require the guarantee of any specific individual.

Also, she should seek counsel to advise her of how to protect her personal assets in the event the business is not solvent and these lenders decide to collect on these guarantees.