Can a Personal Guarantee be enforced on an LLC in California?

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I entered into a personal guarantee for the lease of a property for our LLC. The LLC failed, what is my exposure as a personal guarantor? and can it be enforced in California if we are an LLC?

Attorney Answers

4
Edward Zaryl KotkinGovernment AttorneySanta Ana, CA ·
Yes, the guaranty is enforceable. Your exposure, unless limited in the guaranty itself , is for 100% of the default under the lease plus any interest and attorneys' fees payable per the lease. Lawyer up, but prepare for the worst.
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Kristina Reed ·
Without ready the guaranty or the lease for any exclusions of your liability, you will be responsible for all monetary obligations your LLC owed per the terms of the lease. Your best course of action is to hire an attorney to review the lease and the guaranty and to represent you in a work-out with the landlord.
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Frank Chen ·
Yes, a personal guarantee can be enforced in California. Therefore, if you personally guaranteed the LLC's liabilities and obligations under the lease, you can be held personally liable. However, there are several exceptions to this general rule, so it would be extremely wise for you to consult with an attorney to ascertain what defense or defenses you might be able to assert. No one can really comment on the enforceability of a guarantee without having read it and without having all of the pertinent facts.
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David Hiden ·
As a general rule yes, but there are exceptions, bankruptcy being one of them..Depends on the facts and dollar amount. Check with an attorney asap..Good luck.
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