The Personal Guarantee

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Stop the presses- the porn industry is suffering. The Los Angeles Times is reporting that the porn icon “Girls Gone Wild” (“GGW”) is filing for Chapter 11 bankruptcy protection in order to protect its assets against one of its bigest creditors: Steve Wynn- the casino mogul  Most of the biggest hotels around Vegas and around the world are owned and controlled by Wynn. Somehow, over the last few years, GGW founder Joe Francis has incurred over $30 million in debt to Wynn. According to the times, Wynn will continue to go after Francis because their judgments are against him- not his business. “Our judgments are not against Joe Francis’ companies, but rather against Mr. Francis personally,” Michael Weaver, Wynn Las Vegas’ senior vice president of marketing, said in a statement. “Consequently, these recent bankruptcy filings by the GGW companies will not slow our efforts to collect on our judgments against Mr. Francis.”

The Personal Guarantee

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This problem is not uncommon, though for most people its in reverse. Every week I have a small-business owner come into my office because their business creditors are surrounding them like vultures. As most of you probably know, most small business loans or lines of credit often come with the catch all provision: the personal guarantee. If you have personally guaranteed your business loans- then a “business bankruptcy” won’t help you. If your business has no assets and has become insolvent- a personal bankruptcy may be what you need to get a fresh start. If your personal obligations to your business debt exceeds your ‘consumer debt‘ then you may be exempt from the Means Test- meaning that you can qualify for a Chapter 7, no matter how high your income may be. 

If you are you burdened by personal obligations to business debt- then call today to see if bankruptcy is right for you. We have extensive experience in helping small business owners get back on their feet again. 

 

About Jason

My name is Jason Richards, and I am an attorney in Northern Utah. I run my own practice and have offices in Ogden and North Salt Lake. I grew up in Ogden and attended local public schools. I graduated from the University of Utah Law School with a juris doctorate degree. My practice primarily centralizes on bankruptcy and debt collection. I also specialize in criminal defense and other areas of civil litigation. I represent clients who are suffering from crushing debt that seems hopeless. I have helped many people file for relief under Chapter 7 and Chapter 13 of the United States Bankruptcy Code. I have also helped dozens of clients renegotiate their debt and defend them in debt collection actions with ruthless creditors. If not dealt with promptly and aggressively, creditors will achieve their goal to collect. Bankruptcy is certainly not the solution for everyone. Everybody's situation is different. The best way for you to determine if it is right for you is by consulting with a local bankruptcy attorney. Bankruptcy has helped millions of Americans receive a fresh start and financial independence.
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