Is there a statue of limitation on a personal guarantee for someone who no longer works fora company?
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Is there a statue of limitation on a personal guarantee for someone who no longer works fora company?
My husband’s 13 year old business closed 9 months ago and he had to file bankruptcy. I worked for the company when it first opened and signed a personal guarantee on a supplier as “sec/treas/owner”; I have not worked there in over 10 years. They are now suing me for the debt.
Asked on January 2, 2012 under Bankruptcy Law, Tennessee
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
In most states a personal guarantee is deemed a written contract under their statutes and case law. As such, the statute of limitations for breach of a written contract varies state by state, but typically it is a four (4) year statute of limitations.
Meaning, the time to bring a lawsuit for breach of a written contract (personal guarantee) is usually four (4) years where the time running from the breach of the contract (failure to make payments) to file a lawsuit begins running from the date the last payment was due. I recommend that you consult with a business attorney furth concerning your question.
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