personal guarantee question
Date: Thu, 03/31/2011 - 08:35
If I signed a PG for a business credit card, when does the PG become operative?
Can they just declare the business in default and go after me personally, or to the have to sue or do some other procedure before enforcing the PG
Thanks.
Can they just declare the business in default and go after me personally, or to the have to sue or do some other procedure before enforcing the PG
Thanks.
A personal guarantee is a legally enforceable agreement. The gu
A personal guarantee is a legally enforceable agreement. The guarantor becomes personally liable to repay the debt. The creditor who holds the guarantee will write to the guarantor for the repayment of the debt. If the debt is not paid, the creditor may start enforcement proceedings which will include the following steps:
* Submit an application to court for a judgment
* Apply for bankruptcy notice
* Apply for bankruptcy petition
* Apply to court so that the guarantor is made bankrupt.
The legal process in order to enforce a personal guarantee will take months to complete and at times becomes stressful for the guarantor to handle.
