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If I Personally Guarantee the Loan to Start a Company Am I Responsible for It? – Christina

By on July 11, 2012
If I Personally Guarantee the Loan to Start a Company Am I Responsible for It? – Christina

“Dear Jon,

im about to start coorporation. the guy told me i can use my credit and be a personal guarantor. he says if my company goes south, my personal assets(home) would not be affected if i were to file bk on the coorporation?

would my personal assets/credit be affected if i filed bk on my coorp and i was the personal guarantor? i would hate to lose my home and personals.

Cristina”

Cristina,

Not knowing exactly what country you may be in, or if in America which state, I can give you a general answer to your question, but laws can vary among countries and states.

In most places/countries I know, if you guarantee a loan for a business, you are personally liable or responsible for the loan if the company goes bust. Which does place any of your personal assets, such as a house or property at risk.

So I would question the advice you were given.

If you care to email me as to who and where this advice was given, I will look further into this for you.

Regards,

Jon

Jon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques.

If you have a question you’d like to ask about how to get out of UK debt, just use the online form. I’m happy to help you for free.

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About Jon Emge

Jon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques. If you have a question you’d like to ask about how to get out of UK debt, just use the online form.

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