Legal Question in Business Law in Indiana

Personal Guarantees

We have an S-corp that is in severe financial trouble and will probably be sold or closed with substantial debt owed to one partner. The other partner signed a personal guarantee saying he was responsible for half the debt of the business should the business not be able to repay the debt. No personal assets were pledged per se. How binding are these personal guarantees?


Asked on 2/21/07, 5:55 pm

2 Answers from Attorneys

Burton Padove Indiana and Illinois Lawyer, Burton A. Padove

Re: Personal Guarantees

A general opinion without seeing the guarantees is that it is binding.

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Answered on 2/21/07, 8:03 pm
C. David DuMond Law Offices of David DuMond

Re: Personal Guarantees

Written personal guarantees of corporate debt are usually enforceable. There are exceptions and possible other remedies, but all these are very fact-specific, and need to be discussed with an attorney experienced in commercial law.

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Answered on 2/21/07, 8:23 pm


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