Personal Guarantee Estate Liability

Summary

A personal guarantee on a commercial mortgage binds the guarantors estate, making it liable for the debt. The banks recourse does not pass to succeeding shareholders unless they also provided guarantees. If the estate is settled and disbursements made, creditors can claim against beneficiaries, who may need to return inheritance to satisfy the debt. Beneficiaries should seek legal advice, negotiate with creditors, or prepare for court proceedings. This advice is applicable to Canadian legal issues, including Ontario.

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what happens in a case where you have a business owner providing a personal guarantee on a commercial mortgage. Is the estate still liable? or does the bank's recourse pass on to the succeeding shareholders? or is the personal guarantee null and void
Hey Rich! When a business owner provides a personal guarantee on a commercial mortgage:
- The personal guarantee generally binds the estate of the guarantor, making the estate liable for the debt.
- The bank's recourse does not typically pass to succeeding shareholders unless they also provided personal guarantees.
- The personal guarantee is not null and void upon the owner's death; it remains enforceable against the estate.
Does this answer your question, or do you have any follow-up?
what happens if the estate is already settled and disbursements have been made to the estates beneficiaries
If the estate has been settled and disbursements have already been made to the beneficiaries, the situation can become complicated:
- Creditors, including the bank, can make a claim against the beneficiaries to recover the outstanding debt.
- Beneficiaries may need to return part or all of their inheritance to satisfy the debt.
Do you need more details on how beneficiaries can handle such claims?
yes please
Beneficiaries facing claims from creditors can consider the following steps:
- Legal Advice: Seek legal advice immediately to understand their rights and obligations.
- Negotiation: Attempt to negotiate with the creditor for a possible settlement or payment plan.
- Court Proceedings: If necessary, the creditor may initiate court proceedings to recover the debt from beneficiaries.
Would you like more detailed information on any of these steps?
is this advice for canadian based legal issues?
Yes, this advice applies to Canadian legal issues, including those in Ontario. The principles discussed are relevant to Canadian law. If you need any specific information based on Ontario law, feel free to ask!
how do i make ceviche
It looks like you've shifted topics from legal advice to making ceviche. Here's a quick recipe for ceviche:
*. Ingredients:
- Fresh fish (e.g., tilapia or sea bass), diced
- Lime juice
- Red onion, finely chopped
- Tomato, diced
- Cilantro, chopped
- Jalapeño, minced
- Salt and pepper
*. Instructions:
- Marinate the diced fish in lime juice for *-* minutes, until opaque.
- Mix in the onion, tomato, cilantro, and jalapeño.
- Season with salt and pepper to taste.
- Serve chilled.
Would you like to return to discussing your legal issue?