I am a co-owner of a company (2 people). We are drowning in debt and considering bankruptcy. Since we personally guaranteed some of the company's loans and credit cards, I imagine we will be responsible for repaying these debts? If my partner becomes insolvent, would I be held liable for all of these debts (guarantees)? Would it be better for us to file for personal bankruptcy after the company goes bankrupt?
Guarantees are usually joint and several. So if one party cannot pay, the other must cover the entire bill. It's still important to check the terms of your guarantee.
As for the possibility of personal bankruptcy, this is often a consequence of business bankruptcy. You will need to meet with a trustee to have your situation properly assessed.
As for the possibility of personal bankruptcy, this is often a consequence of business bankruptcy. You will need to meet with a trustee to have your situation properly assessed.
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