QUESTION
Are you still personally responsible for company's debts that occurred from the guaranteed contract that you signed during bankruptcy?
Asked on Mar 31st, 2017 on Bankruptcy - Oregon
More details to this question:
You are a guarantor for a company and the company filed chapter 7 Bankruptcy and the remaining business assets were sold during the bankruptcy.
8 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You are not liable on a loan guarantee if you signed it before filing bankruptcy. You are liable if you signed after filing.
Answered on Jun 25th, 2017 at 10:32 AM
Bankruptcy Attorney serving Cleveland, OH
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Benson Law Firm
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Probably. This is why many small business owners opt to file personal bankruptcy in order to deal with their business debts.
Answered on Jun 25th, 2017 at 2:40 AM
1 Award
Yes, if you signed as a guarantor and you did not personally file a bankruptcy, you are liable for any remaining debt. That is why they wanted the personal guarantee.
Answered on Jun 22nd, 2017 at 6:47 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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It's a bit hard to understand why you took that step. But in general guarantors remain liable after the bankruptcy of the person whose debt they guaranteed. There are some ways of getting out a guaranty, but you should really find a lawyer to represent you and with whom you can take the time to tell all the facts, and discuss all the law applicable to this issue.
Answered on Jun 22nd, 2017 at 6:47 PM
Generally, yes. However, you should have an experienced attorney review everything with you. Coming onto these websites and asking legal questions is like calling a doctor you have never met and asking questions about your medical file.
Answered on Jun 22nd, 2017 at 6:46 PM
A business bankruptcy does not result in a discharge of debts for the business or for anyone who personally guaranteed the business debts. That is why creditors demand a personal guarantee.
Answered on Jun 22nd, 2017 at 6:46 PM
If you personally guaranteed a corporate debt, or a co-signor on any debt, if the company or other signor files bankruptcy that will not relieve you of the debt unless the debt is paid in full in the bankruptcy. And, a corporation cannot receive a discharge in a Chapter 7 anyway.
Answered on Jun 22nd, 2017 at 6:46 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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You are personally responsible for any guarantee of a company that filed bankruptcy to the extent the debt has not been paid.
Answered on Jun 22nd, 2017 at 6:46 PM