I have a personal guarantee with 2 Guarantors. I just found out that they are both going to declare bankruptcy. What actions can I take to get my money back? Where do I fall in line with other creditors if they file?

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Originally Posted by astalter

I have a personal guarantee with 2 Guarantors. I just found out that they are both going to declare bankruptcy. What actions can I take to get my money back? Where do I fall in line with other creditors if they file?

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If they file bankruptcy you would join the list of other creditors. You cannot get your money back if they both file and are adjudicated bankrupt. That's why they are filing in bankruptcy.

Are these secured or unsecured debts? Was there any collateral?

If they owe you money, and they file bankruptcy, what type are they filing if personal ? A 7 or a 13?

If this is not a secure loan, and it does not sound like it is, most likely you don't get your money if it is a 7 and if it is a 13 you will get pennies on the dollar ( maybe dimes on a dollar)

Neither the answers I wanted to hear, but thank you for your help. I do not yet know if they are filing 7 or 13; it was an unsecure loan to a builder to take down 2 lots (but our name is not on the lots).