How do I get a letter of personal guarantee for a business owner that owes me several thousand dollars?
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How do I get a letter of personal guarantee for a business owner that owes me several thousand dollars?
A company owes me for a job completed 4 months ago. I believe he is willing to sign a letter guaranteeing the debt personally, however, I am having a difficult time finding an appropriate template on-line as most of them refer to bank lending, etc. Can it be as simple as “name” owes “me” “amount” and guarantees the debt personally if company fails? Also, adding allowable time frame before taking legal action.
Asked on September 30, 2011 under Bankruptcy Law, Nevada
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
There are many forms online setting forth a template for a personal guarantee concerning an obligation owed by a business with respect to its owner or a third party. Some templates can be as simple as a mofidication of a promissory note whose form can be found online.
In your situation, I suggest some simple language as follows in a document entitled "Personal Guarantee"
"I (name) personally guarantee the obligation and debt owed by (name) in the amount of $_______ for work/services/materials provided by (name) and the following address __________ during the period of _______ to ________" and have the document dated and signed by that person giving the guarantee.
If you want more detail in the template above, do so and have a stated payment date as well.
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