Personal Guarantees in Commercial Collection: How Helpful Are They?
The McHughes Law Firm
JUNE 22, 2016
In today’s volatile marketplace, the existence of a personal guarantee may provide the only viable basis for collecting outstanding receivables from a corporate obligor experiencing financial difficulty. Guarantees can be classified as being either guarantees of payment or guarantees of collection, and the distinction is important to recognize. A provision for the recovery of collection expenses and attorney’s fees should be inserted. DEBT COLLECTION