Filing Consumer Bankruptcy for Personal Guarantees
If you own a small business for which you provided a personal guarantee on a loan, or if you provided a personal guarantee for a family member’s business or other type of loan, you could end up in a very complicated situation if the business ultimately needs to file for bankruptcy , or if the other party (for which you gave the personal guarantee) ends up filing for bankruptcy. The issue of personal guarantees and consumer bankruptcy is currently attracting more notice given the terms of some of the SBA loans related to COVID-19 relief. We want to provide you with more information about loans with personal guarantees, and to say more about how consumer bankruptcy may be the only option to discharge a loan with a personal guarantee despite a business bankruptcy. SBA Loans That Required Personal Guarantees Anyone who owns a business already might be familiar with the types of business loans that can require personal guarantees, including specific kinds of SBA loans awarded during the CO...