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  1. #1
    Join Date
    Jan 2009
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    3

    Default Personal Guaranty and My Home

    My question involves bankruptcy in the state of: Colorado I am one of 2 corporate officers that signed a personal guaranty (no property specified) on a retail lease. The most that we will owe upon default is one full year's rent even though there are 4 years left. I want to know if the business ends up insolvent and I end up personally bankrupt, that my home is safe. I also would like to know how a payment plan would work if I had no income or liquid assets at all? Thank you in advance.

  2. #2
    Join Date
    Jan 2009
    Posts
    11

    Default Re: Personal Guaranty and My Home

    First of all, you should avoid bankruptcy if possible with your debts and income. Second of all, you may be able to liquidate your debts instead of going through repayment under the bankruptcy code. A house that is the primrary residence of the filer is usually excempt up to a certain amount. You may have an equity problem, however. See if you can negotiate the debt if feasible.

  3. #3
    Join Date
    Jan 2009
    Posts
    3

    Default Re: Personal Guaranty and My Home

    Could someone please elaborate? I appreciate the response and at the same time it was a bit vague.

    If all I have in terms of equity is a a motorcycle and a couple TV's, then they can take my home? That doesn't sound right.

    Also I'd like to state the obvious....bankruptcy is absolutely a last... but very looming... resort. The landlord is very unwilling to restructure our lease temporarily while the economic conditions run their course. Which is his right, but what more can I do? I am not very willing to allow my 33 year old business go down the drain by just liquidating because I think we might not make it. It's a very marginal and slow bleed at this point.

  4. #4
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Personal Guaranty and My Home

    Quote Quoting CLLCTR5
    View Post
    Could someone please elaborate? I appreciate the response and at the same time it was a bit vague.

    If all I have in terms of equity is a a motorcycle and a couple TV's, then they can take my home? That doesn't sound right.

    Also I'd like to state the obvious....bankruptcy is absolutely a last... but very looming... resort. The landlord is very unwilling to restructure our lease temporarily while the economic conditions run their course. Which is his right, but what more can I do? I am not very willing to allow my 33 year old business go down the drain by just liquidating because I think we might not make it. It's a very marginal and slow bleed at this point.
    I am a firm believer in bankruptcy. In your situation it may be best for you. You can keep your primary home, you would need to reafirm your mortgage.

    The unsecured debts can all be discharged. Credit cards could be a problem depending on your income.

    I would suggest you speak to a bankruptcy attorney in your area. This site can put you intouch with one.

  5. #5
    Join Date
    Jan 2009
    Posts
    3

    Default Re: Personal Guaranty and My Home

    I will speak to a bankruptcy attorney (again). He was a bit vague as well.

    Two more questions please.

    1) What does it mean that credit cards may be a problem depending on my income? If the store goes bankrupt I would not have very much income at all if any. It is my belief that I would have to start out very "ground floor" if I found a job at all.

    2) What about marital assets/income? My wife did not sign the Guaranty and only her name is on the home and her retirement fund/401K. The reason why I am asking this is if there is any chance her assets would be in danger I would be more likely to give up the farm early...I currently have a wild desire to make it through the next few years but I refuse to drag her into this. Thank you.

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