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Can I renegotiate my business CC debt if I am personal guarantor?

I am president of two CA S Corps. The first one is a fairly sucessful
carpet cleaning company. The second is a film and video company that erans little or nothing but has $25 K in CC debt, for which I am personal guarantor. Intersts rates there have recently gon through the roof. Can I renegotiate that CC debt without endangering the income/assts of the other company?

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Attorney answers (2)

Reputation Level 20
The carpet cleaning company is insulated from the other company's debt by the corporate shields. Your personal liability as a guarantor does not give the CC company the right to go after your carpet cleaning business. Go ahead and renegotiate. It may impact your credit, but the good business is safe.

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change.

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Reputation Level 16
Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.

Mr. Fink is correct. Your barganing power to negotiate down the debt of your film and video company will depend on your own financial situation: if you (the guarantor) do not have much in assets, the lenders will be more likely to negotiate with you. As a part of the negotiation, you may ask that they will not make any negative reporting on your credit, and if they agree, this will also protect your credit. Be sure to consult your own attorney to protect your legal rights.

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