When your business loan personal loan from a financial institution and they need someone to back the debt, the lender often requires a personal guarantee. The Edmonton personal guarantee lawyers at Kahane Law Office help you with your personal guarantee when you need us. If you need to act quickly, we often meet the same or the day after you call. Our whole Edmonton Law Firm team works with your schedule. Get in touch with us today at (780) 571-8463.
What Is A Personal Guarantee?
A personal guarantee is when someone makes a promise to make good on a loan or other obligation received from another person or a corporate entity. Personal guarantees often include severe consequences. The Alberta courts enforce the binding nature of the guarantee on the individual making the promise to pay. To protect people, the Alberta government requires a Guarantees Acknowledgement certificate. This means that the person met with Edmonton personal guarantee lawyers to learn the full nature of the guarantee. This ensures a personal guarantee is effective and binding.
When Are Personal Guarantees Used?
There are many situations when personal guarantees come into play. Lenders want to secure their loans, which often means making sure a person or company is on the hook for a loan or other type of obligation. For example, here are some of the situations when people need personal guarantee services:
- Applying for a student loan;
- Securing a car loan;
- helping a family member borrow money;
- Signing a rental or lease agreement;
- Receiving a small business loan;
- Applying for unsecured lines of credit; and lastly
- Securing corporate loans.
Why You Need A Guarantees Acknowledgement Certificate
Most lenders require a Guarantees Acknowledgement Certificate as part of securing their loans. Without the certificate, your guarantee may not be effective in Alberta. The certificate is a simple form that says a lawyer has examined the person giving a guarantee personally and is satisfied the person understands the documents they will be signing. Both the lawyer and the person giving the guarantee sign the Guarantees Acknowledgement Certificate. This protects you, since you then understand the nature of the promise. Sometimes the guarantee promises to pay more than a person thought when it comes to the obligations.
How Edmonton Personal Guarantee Lawyers Help With Your Guarantee
Alberta law requires you to work with a lawyer if you are personally guaranteeing something. As outlined in the Guarantees Acknowledgment Act, a lawyer must sign the personal guarantee acknowledgement certificate, along with the person giving the personal guarantee. Your guarantee may not be effective without a lawyer’s signature. This legal obligation is an added step designed to protect you. When you personally guarantee something, you are essentially creating a personal obligation that can have severe and lasting consequences. A lawyer will provide helpful legal advice and ensure you understand the consequences of signing a personal guarantee.
What To Bring To Your Appointment
It is always important to be prepared. Otherwise, you come to our office and we then need to re-schedule with you. This sometimes leads to increased costs and / or delays in securing the loan involved. Our Edmonton personal guarantee lawyers want you to experience an easy and efficient process when you use our firm. When you meet with a Kahane Law lawyer to sign off on your personal guarantee, you must bring three things:
- The actual loan agreement you wish to guarantee. Lenders often forget to send these with you so specifically ask for the agreement;
- Your personal guarantee and the acknowledgement certificate that the lender requires signed; and lastly
- Two pieces of ID, one of which must be a government-issued ID with a photo. The second may be a social insurance number card, a credit card or a health card.
Please note: It is very important you bring the loan agreement documents from the lender, even though lenders sometimes drag their feet on supplying them. Without the documents, we cannot complete the personal guarantee process.
Hiring Edmonton Personal Guarantee Lawyers
Providing a personal guarantee means you are taking on significant liability and potentially losing control over when and how much you must pay. When you need to sign a personal guarantee, call the lawyers at Kahane Law Office in Edmonton, Alberta. We make sure you understand exactly what you’re signing. CONTACT US TODAY. You can reach us directly in Edmonton at 780-571-8463 or toll-free at 1-877-225-8817. You can also email us directly here. We look forward to working with you.