Legal Question in Bankruptcy in New York

Re: repayment of this line of credit

If Debtor made a personal guaranty of payment (signed personally for a loan) for a business loan, then yes, the lender can come after Debtor personally.

Lenders are pretty savvy about corporate veils. It is SOP that a lender will demand a personal guaranty from the business owner when dealing with a business that is just getting established. Without that personal guaranty, the lender generally will not issue the loan until the business has been around for quite some time.

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