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Having a business lease that is personally guaranteed, can they come after my home?
Posted:
Thu Oct 28, 2010 7:40 am
by Christine_C
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?
Re: Having a business lease that is personally guaranteed, can they come after my home?
Posted:
Thu Oct 28, 2010 7:43 am
by Common_Sense
Not if the debt is covered in the bankruptcy.
Re: Having a business lease that is personally guaranteed, can they come after my home?
Posted:
Thu Oct 28, 2010 7:47 am
by wizjp
By definition that's a "Personal Guarantee"
Re: Having a business lease that is personally guaranteed, can they come after my home?
Posted:
Thu Oct 28, 2010 7:51 am
by Landlord
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.
Re: Having a business lease that is personally guaranteed, can they come after my home?
Posted:
Thu Oct 28, 2010 7:55 am
by patrick
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.