Expert Advice When You Need It Most

Can a third party guarantor come after me on a business loan that I personally guaranteed? What can they come after?

Asked over 2 years ago - Pennsylvania

I took out a business loan in my corporate name with a personally guarantee. The company who I was considered an independent contractor for was the guarantor on the loan with my commissions being the collateral. The company cancelled my contract and the bank accelerated the loan to be paid in 30 days. The company being the guarantor pays the loan after the bank sends it in as uncollected debt. Can the company then come after me for the money and to what extent? The loan is under Ohio law and the company does not pay me any commissions after cancelling my contract.

Flag

Save

Share with:

Attorney answers (1)

Antoni Henry Froehling

Reputation Level 9

Answered over 2 years ago. Personal Injury Lawyer in Puyallup, WA.

Flag

This can be a pretty complicated question and I would certainly encourage you to check locally with a lawyer familiar with collections.

Generally, there can be either a written, oral or even an implied contract between you and the guarantor that if they pay, you have to pay. However, when they canceled their agreement with you, that may act as a breach of contract which excuses you from further performance. its going to depend completely on the facts and any written documents you have or can get your hands on. Be sure to have as much in writing as you can find when you go see a local lawyer.

Mark as good answer

Add comment