I THOUGHT I WAS PROTECTED BY INCORPORATION BUT NOW I OWE MONEY ON PERSONAL GUARANTEES IS HELP AVAILABLE?
You hear all those commercials about incorporating to protect yourself from personal liability. However, several of Mr. Taieb’s clients created LLCs or corporations but then signed personal guarantees. As a result, they personally owe thousands of dollars and setting up the corporations did nothing to help them.
It usually does not make sense to file a corporate bankruptcy, since a trustee would only liquidate any assets of the corporation and you would still be responsible for the debts personally.
Most of Mr. Taieb’s clients in this situation will file a Chapter 13 to restructure or eliminate a large percentage of these personal loans as long as they are eligible to file a Chapter 13 under the section 109 (e) debt limitations.
Most clients who give personal guarantees also make the mistake of giving the creditor a security interest which may be crammed down in a Chapter 13 based on several circumstances that Mr. Taieb will go over. It is unlikely that you will get a lot of money from a bank just because you have an LLC.
So if you got into debt because of personal guarantees please contact TAIEBLAW to get a consultation to see how you may be able to reduce or even eliminate the personal guarantee that you are now stuck with.
Steven N. Taieb, Esq. is here to help you and is a South Jersey Bankruptcy Attorney who has helped over 7000 people with their financial problems for the past 32 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.
We are more than happy to discuss all your options and to see if bankruptcy is the best option for you.