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Adept Counsel On Guarantor Issues In Georgia

Personal and corporate guaranties are standard requirements in many commercial loan transactions. In the case of a small business, the lender often wants the additional liability of a guarantor — usually the owner — to mitigate the lender’s losses should the borrower business fail or default on the loan. Also, the business assets pledged as security for the loan may be worth less than the debt owed when the business shutters or defaults. To that end, lenders seek to ensure that a court will enforce the guaranty if the lender turns to the guarantor for collection.

At Jones & Walden LLC, our lawyers have represented scores of clients throughout Atlanta and surrounding areas in actions involving guaranty agreements, including both suits by creditors and guarantor defense cases. Our in-depth understanding of business, real estate, bankruptcy and contract laws in Georgia make us well-suited to help our clients avoid the pitfalls and problems that can arise when guaranties are not effectively written.

Working To Strengthen Guaranty Agreements In Georgia

The recent “Great Recession” exposed many of the pitfalls in enforcing guaranties and provided lenders with ample opportunity to test, review and strengthen existing guaranty terms for future lending transactions. The Great Recession also served as a catalyst for novel and creative defenses asserted by guarantors. As a result, a significant body of new law emerged in this area.

Guarantors rely on five principal categories of defenses to avoid liability on a personal guaranty, which include:

  1. Basic contract law defenses (e.g., failure of consideration)
  2. Disclosure issues
  3. Increased risk
  4. Primary obligation (i.e., problems with the note or other debt instruments can invalidate related guaranties)
  5. Bankruptcy

If successful, these defenses can overturn or delay enforcement of the guaranty. Whether seeking to enforce or invalidate a guaranty, it is crucial for the litigant to retain counsel familiar with the law applicable to guaranties and this nuanced practice area.

Our Diverse Backgrounds Help In Resolving Complex Matters

One of the many benefits of working with the attorneys at Jones & Walden LLC, is the fact that we offer the wide range of legal services offered at large firms while also providing the customized, personal attention you expect from a small firm. Our legal team has decades of combined experience — including litigation experience — that allows us to address guarantor issues related to commercial loans, real estate lenders, bankruptcy petitions, contract disputes and more.

We’re known for our professionalism, precision and ability to handle complex legal matters in house, without the need to hire additional lawyers from another firm.

Let Us Defend Your Best Interests

At Jones & Walden LLC, we strive to obtain the best possible outcomes when defending guarantors or creditors in Georgia. We understand the pitfalls present in these types of cases and how to mitigate our clients’ losses by ensuring the proper enforcement of guaranties in the state.

If you would like to learn more about our experience or services or would like to meet with us to discuss retaining our services, we encourage you to contact our office in Atlanta to schedule a consultation. Call 678-701-9235 or contact us online to get started.