Clients are often called upon by entities such as lenders and suppliers to provide personal guarantees with respect to obligations of associated entities such as family members, business partners or companies of which a client is a director.
Such personal guarantees can represent significant personal risk to a guarantor as they often enable another party to have recourse to the guarantor’s personal assets without first seeking relief against that the individual or entity whose obligations are guaranteed by way of the personal guarantee. Therefore, it is important for the guarantor to seek legal advice.
Financial institutions also routinely require guarantors to seek legal advice in relation to personal guarantees to assist in the enforceability of the guarantee.
Rowe Bristol Lawyers is experienced in advising and assisting clients with respect to personal guarantees, including:
- considering and advising clients in relation to rights and obligations under a personal guarantee, including as affected by the National Credit Code;
- advising clients with respect to amendment of personal guarantees;
- advising and representing clients with respect to enforcing a personal guarantee; and
- advising and representing clients with respect to resisting enforcement by a third party of a personal guarantee.
If you require legal advice in relation to personal guarantees, please contact us to arrange a meeting so that we may consider your specific circumstances.
The above information is provided as general information only and should not be relied upon as legal advice. The accuracy of this information may have changed from the date when it was published.