Germany
Maximilianstr. 280539 MĂĽnchen
Germany+49 89 4444 373-20
Kanzlei Verbracken & Partner
Personal sureties & guarantees
A personal guarantee can create substantial obligations even after a business has ended. The agreement and the demand for payment need to be examined together.
What exactly was guaranteed?
A guarantee secures another party’s debt. Review the cap, secured claims, amendments and the scope of any guarantee waiving prior enforcement against the principal debtor. A suretyship differs from an independent guarantee, assumption of joint debt or security over an asset.
Company insolvency does not settle the guarantee
Company insolvency does not automatically release a guarantor. Even when the principal debtor receives discharge, section 301(2) InsO generally preserves rights against guarantors and co-debtors. A guarantor’s own insolvency or settlement therefore requires separate assessment.
Negotiation and personal options
Bring the agreement, termination notice, claim calculation and details of other security. We assess whether a settlement is financially sustainable and consider personal debt-relief routes. Acknowledging liability or signing a new repayment agreement should follow assessment of its legal consequences.
Surety under § 765 BGB or independent guarantee?
A surety answers for another person’s debt. An independent guarantee may instead create a separate payment undertaking. The contract heading alone is not decisive: wording, purpose, available defences, limits and conditions for payment must be assessed. Bring the full agreement and all amendments.
Your situation deserves a clear next step.
We assess your circumstances personally and involve the appropriate professionals for legal and tax questions.