Legal Question in Business Law in California

Llc bk

I have an SBA loan against my LLC But I think I personally guaranteed it. If I Bk the LLC would that Loan die with the company


Asked on 4/16/08, 12:44 am

3 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Llc bk

You THINK you personally guaranteed it? How can anyone possibly forget so major a step? Don't yoy keep records you can refer to?

I would guess it's 97% likely you personally guaranteed your SBA loan, since that is kinda standard operating practice at the SBA and its lending institutions.

If the LLC is placed in bankruptcy, the SBA and/or the lender will be right there at the front of the line in bankruptcy court, and what they don't get from the bankruptcy, they will be pounding on your door to make up. They are tough, relentless and very thorough.

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Answered on 4/16/08, 1:16 am
Terry A. Nelson Nelson & Lawless

Re: Llc bk

You answered your own question. A 'personal' guarantee is just that. Of course you are responsible for the loan; most lenders require personal guarantees from the principles.

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Answered on 4/16/08, 12:49 pm
Jonas Grant Law Office of Jonas M. Grant, A.P.C.

Re: Llc bk

It sounds as if you would need a business and personal bankruptcy to avoid liablity for the loan. I'm not a bankruptcy attorney, so you should consult one, if this is something you may consider.

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Answered on 4/16/08, 7:10 pm


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