Having a business lease that is personally guaranteed, can they come after my home?

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Having a business lease that is personally guaranteed, can they come after my home?

Postby Christine_C » Thu Oct 28, 2010 7:40 am

Own a small retail business. Have a lease with 1 1/2 years left and a personal guarantee. I am an s corp. May have to declare corporate and personal bankruptcy. Is my home on the line?
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Re: Having a business lease that is personally guaranteed, can they come after my home?

Postby Common_Sense » Thu Oct 28, 2010 7:43 am

Not if the debt is covered in the bankruptcy.
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Re: Having a business lease that is personally guaranteed, can they come after my home?

Postby wizjp » Thu Oct 28, 2010 7:47 am

By definition that's a "Personal Guarantee"
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Re: Having a business lease that is personally guaranteed, can they come after my home?

Postby Landlord » Thu Oct 28, 2010 7:51 am

No, not unless you put it up as collateral. The debt will go with the bankruptcy. In the odd chance you did put the house up, yes, it is gone.
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Re: Having a business lease that is personally guaranteed, can they come after my home?

Postby patrick » Thu Oct 28, 2010 7:55 am

If you file BK, your primary residence is excluded from the proceedings.
If you do not, and live in a Homestead Law state, then they can not come after your house.
Even if you dont, they can only get a lien on it, and you will not be forced to sell.
However, when you do, they will get the money you owe, plus interest.
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