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 9 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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