ExpertLaw.com Forums

Personal Guaranty Language and Discharge in Bankruptcy

Printable View

  • 11-26-2007, 07:58 PM
    lostitall
    Personal Guaranty Language and Discharge in Bankruptcy
    Hi again,

    Because we leased property we had to sign a personal guaranty. Obviously we didn't think our business would fail, but it has. The guaranty has the following paragraph which makes me think that it won't be dischargable in all or in part by a bankruptcy - can someone verify this for me? Oh, I'm in Washington State.

    "This Guaranty is an absolute and unconditional guaranty of payment and of performance. This Guaranty shall be enforceable against Guarantor without the necessity of any suit or proceedings on Landlor's part of any kind or nature whatsoever against Tenant, its successors and assigns, and without the necessity of any notice of nonpayment, nonperformance or nonobservance or any other notice or demand to which Guarantor might otherwise be entitled, all of which Guarantor hereby expressly waives; and Guarantor hereby expressly agrees that the validity of this Guaranty and the obligations of Guarantor hereunder shall in no way be terminated, affected, diminished or impaired by reason of the assertion or the failure to assert by remedies reserved to Landlord pursuant to the provisions of the Lease or by relief of Tenant from any of Tenant's obligations under the Lease or otherwise by (a) the release or discharge of Tenant in any creditors' proceedings, receivership, bankruptcy or other proceedings; (b) the impairment, limitation or modification of the liability of tTenant or the estate of Tenant in bankruptcy, or of any remedy for the enforcement of Tenant's said liability under the Lease, resulting from the operation of any present or future provision of the National Bankruptcy Act or other statue or from the decision in any court; or (c) the rejection or disaffirmance of the Lease in any such proeedings.

    Thanks for your help!
  • 11-28-2007, 08:22 AM
    Mr. Knowitall
    Re: Personal Guaranty Language and Discharge in Bankruptcy
    Clauses like that don't guarantee that a guaranty is nondischargeable. You should discuss your situation with a bankruptcy lawyer.
All times are GMT -7. The time now is 03:28 PM.
Powered by vBulletin® Version 4.2.4
Copyright © 2023 vBulletin Solutions, Inc. All rights reserved.
Copyright © 2004 - 2018 ExpertLaw.com, All Rights Reserved