Business Debts With Personal Guarantees

We have noticed an upswing in the number of business cases that we are receiving in which the principal owner of the business has personally guaranteed the business debts.  These cases provide unique challenges in balancing the financial interests of the business against the financial interests of the personal guarantor.  If there is one thing that we want to say on this point immediately then it is this:  DO NOT LIQUIDATE RETIREMENT ACCOUNTS OR PENSION FUNDS TO PAY PERSONALLY GUARANTEED BUSINESS DEBTS.  The second thing that we want to say on this point immediately is:  DO NOT FAIL TO PAY TAXES THAT ARE DUE IN ORDER TO PAY OTHER BUSINESS DEBTS.

Now, with that said, the pressures on business owners to personal pay their business debts can be extreme.  There are solutions to these issues that often require technical review of each situation.  The legal work on this type of situation is often productive in finding solutions to the debt problems but, of course, each situation has to be independently reviewed.  Start from the point of view of the two comments above and then narrow the issues to produce an outcome that is manageable.