Personal Guaranty

Description

The Personal Guaranty is to be signed by a person or entity that promises to pay another person’s or entity’s debt.  For example, if Bart Simpson borrows $100 from Moe and signs a Promissory Note to evidence the debt, Homer and Marge Simpson could guaranty Bart’s debt, in which case they are called guarantors of the Promissory Note.

The legal consequence of being a guarantor is that if the debt is not paid, the lender can sue and collect the unpaid debt from both the borrower and all guarantors.  If fact, unless there is a contract that prohibits the lender from first suing the borrower, the lender can sue ONLY the guarantors and collect 100% of the debt from the guarantors.  If there is more than one guarantor, the lender can pick and chose one or some or all of the guarantors to sue and can collect 100% of the debt from any one guarantor unless the Personal Guaranty provides otherwise.

Note :  The Personal Guaranty is not a stand-alone document .  This document is intended to be used with a Promissory Note or another type of contract (like a lease) that creates obligations on a person or entity.  There must be an existing debt or obligation to guarantee. No debt, no guaranty.

Related Documents :  A Personal Guaranty can be secured by a lien on personal property (use our Security Agreement for personal property in Arizona) and by a lien on real property (use our Deed of Trust for real property located in Arizona).

Disclaimer: If you purchase this form, you are buying a product from Richard Keyt and KEYTLaw, LLC. (collectively the “Firm”), and you are not hiring the Firm to provide any legal services or legal advice or represent you in any capacity. If you modify the form in any way, you are solely responsible for the legal affect of the changes you make. The form is drafted to comply only with Arizona law because Arizona is the only state where Richard Keyt is licensed to practice law. Do not use this document in any state other than Arizona without first having it reviewed and modified as necessary by an experienced attorney in the state where you intend to use the form. The Firm makes no representations or warranties of any kind with respect to this form. The Firm disclaims all warranties for fitness for a particular purpose.