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About: Personal guarantee     Goto   Sponge   NotDistinct   Permalink

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A personal guarantee is a promise made by a person or an organization (the guarantor) to accept responsibility for some other party's debt (the debtor) if the debtor fails to pay it. In the case of a personal guarantee made by an individual on behalf of another, the person who makes the personal guarantee is usually referred to as a co-signer of a note for a loan. A guarantor can be any party, including an individual or another organization, with a credit history. In the case of individuals parents will sometimes provide guarantees for their adult children who lack a credit history.