If a tenant in a commercial lease space signs a personal guarentee, can the Landlord still hold them liable after the tenant has filed bankruptcy? Or are personal guarentees dissolved in bankruptcy?
2007-03-19 13:52:50 · 4 answers · asked by envision_man 2 in Business & Finance ➔ Renting & Real Estate
Were his personal debts discharged in the bankruptcy or the company debts or what?
If he was incorporated and the corporation filed for bankruptcy and he did not file personally, then I think you can still hold him personally liable since he signed a personal guarantee.
2007-03-19 14:01:15 · answer #1 · answered by Faye H 6 · 0⤊ 0⤋
Personal guarantees are discharged in bankruptcy. They are considered a "contingent, unliquidated claim". The only exception is if you commited an act which allows the creditor to sue you to determine your debt to be non-dischargeable. For a catalog of this sort of conduct, see 11 USC section 523(a). Principal subsections which could apply include fraud or a materially false financial statement upon which the creditor justifiably relied.
2007-03-19 22:27:10 · answer #2 · answered by DLeibowitz 5 · 0⤊ 0⤋
Any type of a contract is a personal guarantee. Just about all are absolved by bankruptcy. There are a few exceptions by state.
2007-03-19 20:58:14 · answer #3 · answered by ttpawpaw 7 · 0⤊ 0⤋
It probably depends on what State you are in.
2007-03-19 21:25:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋