A creditor of my business is now in liquidation. However he provided a personal guarantee for the equipment I sold to his company a couple of years back. Can I seek to be paid from him personally since I’m unlikely to get a cent out of the company?
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Answer by Kelly Angus, Adelaide 5000 SA
- Personal guarantees are not affected by liquidation as they are a personal arrangement between the creditor and the guarantor. You are entitled to seek payment directly from the person who provided the personal guarantee.