Legal Question in Business Law in New York

Loan not repaid and unconditionally guaranteed
My former friend is an office manager
for the company where I worked.
The company was in financial trouble
and he begged me to lend them
$60,000, which I eventually did. It's
now been almost a year since the
loan was due, and I haven't been
paid yet. I'm now suing the company
and my ex-friend for the money that
is owed me. In the contract which he
signed on behalf of the company, he
says that he ''unconditionally
guarantees all the obligations of the
Borrower.'' Does this guarantee
mean that he is obligated to pay me
out of his own pocket if the company
is not able to pay me back?

Asked on 7/04/07, 10:41 pm

2 Answers from Attorneys

Nancy Delain Delain Law Office, PLLC

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Re: Loan not repaid and unconditionally guaranteed

Yep. That was a Good Clause for you to put in.

Remember, though, that unsecured debt like this can be discharged in bankruptcy. Be reasonable in your demand for payment (i.e., let him pay you over time if he needs to do so) or your ex-friend may just end up in bankruptcy court and you will be standing in line with his/the company's other creditors, unpaid.

Good luck.

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Answered on 7/05/07, 2:59 am

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