How iron clad are “personal guarantees”?
admin | Oct 07, 2010 | Comments 2
I am contempating filing bankruptcy bc I had to close my business and I have two debts that have personal guarantees attatched to them. Personally I am unquestionably broke and starting over. I already lost my home to foreclosure and sold all that I had in the moving sale. I have no assets but the one thing I have going for me is I just started a clad paying job. My worries are that those business debts are going to garnish my wages. I have about 8k in those debts. I have personal debts, I am not sure about the foreclosure thing and how that is going to come back on me financially or the equity loan that was secured by the home. I am going to pay my personal debt but I am giving thought to bankruptcy to protect myself from the business debts with personal guartees. The business was an LLC so I know there are inate protection there but like I said the personal guarantee is what they are threatening me with at this time. I was told today that one company is starting a pre-trial asset investigation. Any advice is appreciated.
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Filed Under: Bankruptcy
You should consult an attorney who specializes in bankruptcy. You need specific legal advice that is up to date and a plot of action.
Sorry about your loss, but many successful people have gone through extreme testing and came out well.
Be Proactive… Garnishing will embarass you at work. Not a excellent thing.
Well what I would suggest is live with basics.. You don’t need cabel tv or the like until you make on your feet. Pack a lunch and consider car pooling if needed. Be a responsible adult and make a partime job doing a touch you like to do. Computer stuff , gardening, painting, dog sitting ($50-60 a day believe it or not), reckon outside the box. $8000 is not a lot of money. Contact each company with a letter stating that after your situation and that you intend to pay each one back with small monthy payments. If they cash the initially check you are home emancipated….They have agreed to your proposal. Make sure the payments are affordable to you. Keep copies of the statements they send you with the new balance. In the event they do take you to court you will have a copy of the letter you sent to them and a description of small payments they are accepting. Take care of your valuable needs initially. Affordable shelter, Affordable food, Affordable transportation etc.
When I make into a terrible situation I usually question my self what would I say to my young cousin that looks up to me. That is where you will find the preeminent advice. If someone you care for is in distress you will caution them the aptly thing to do. Finances are like a diet. You will do without but will feel fantastic. If you go back to your ancient ways you will suffer again. Learn and teach ….place on’t repeat. Excellent luck deity Bless
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