Monthly Archives: October 2026
What Happens to a Personal Guarantee in a Business Bankruptcy?
Most business owners sign personal guarantees without much thought. The bank will not lend without one, the landlord insists on it, the equipment vendor requires it. Years later, when the company is considering a Chapter 11 reorganization, that signature can become the most important document in the file. The short answer to what happens… Read More »
What Is a Preference Payment and Can a Trustee Recover It?
Picture a business owner who, a few weeks before a Chapter 11 filing, finally pays the one supplier who has been calling every morning. Or an individual who repays a $10,000 loan from a sibling a few months before filing a Chapter 7 case. Both payments feel responsible. Both may be clawed back. That… Read More »
