In the current environment with rising inflation and interest
rates, there is more pressure on business owners and individuals to
ensure financial obligations are met. This is particularly so when
these obligations have been guaranteed by business owners,
directors, or family and friends. A failure to meet these
obligations may have dire financial consequences for these
guarantors.
Whilst many might view a personal guarantee as an ironclad
agreement, there are circumstances where a personal guarantee is
not legally enforceable.
In this article, we provide an overview of personal guarantees
and the circumstances in which guarantors may have a personal
guarantee set aside.
Key Takeaways
