Personal guarantees

[snowguy]

What is the name of your state?Mi
I have a personal guarantee with a vendor and cant pay back the money owed for the product...It is around 40k...I am in the snowmobiling business and it has been a terrible year....What can I do to protect my home...And any other assets I have....Any advice would be great...

 

[ashhnyctt]

You CERTAINLY need to speak with an attorney. Unfortunantly, if you signed a personal guarantee you might be out of luck. Don't let this sit...contact an attorney.

 

[HomeGuru]

What is the name of your state?Mi
I have a personal guarantee with a vendor and cant pay back the money owed for the product...It is around 40k...I am in the snowmobiling business and it has been a terrible year....What can I do to protect my home...And any other assets I have....Any advice would be great...

**A: sell some assets and pay back something.

 

[olgethorpe]

By all means, talk with a lawyer. But here's some thoughts: if the "business" was incorporated, then its a separate enitity. You could declare personal BK which would releive you of any liability for the company...and protect your personal assets from its problems.

Even if it wasn't incorporated, a personal BK would get you away from the personal gurantee...