Tag Archives: guarantor

Is Chapter 11 A Painless Solution For Guarantors?

Owners of small business entities are frequently required to guaranty the debts of such entities.  Those business entities might later file for Chapter 11, and may be able to achieve confirmation of a plan to restructure their indebtedness.   The question then presented is whether this confirmation event affects the separate guaranty obligations of the owners?  … Continue Reading

Hey Insiders, the Ninth Circuit Just Gave You a Leg-Up on Avoiding Preference Exposure on Guaranteed Debt

It is already relatively settled that an insider who has personally guaranteed the debt of his or her company may face preference exposure to the extent the guaranteed debt is paid down during the one-year preference period applicable to insiders. Without doubt, such payments directly benefit the guarantor, whose obligation to the primary creditor is … Continue Reading