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Business Debt/Guarantor of corporate debt.


Hello, About 18 months ago I started working for a friend who offered me 25% owner ship in his company if I came and worked for him. I have witness to prove he offered that. Upon my start of employment I filed out credit application for vendors. I signed them as an owner and personal guarantee. During the year, upon me asking about ownership, I was told the attorneys are working on the papers. Also the percentage dropped, 20%, 15% 5% then 5% after one year. After that I left employment with him owing me 8 weeks of payroll,  and my last expense report. Since then I have been in court twice for monies he owes vendors from the time I was still employed. He received the funds from the vendors equipment but never paid them. I was told that in Illinois the creditor must first undertake to collect the debt from the debtor, including litigation, before the guarantor becomes liable for the obligation. If the creditor fails to follow the proper procedure, the guarantor has no liability of the debt. Is that true and where can I find that in Illinois law?
thank you.

Thank you for your inquiry. With regards to the personal guarantees, if you signed them as an officer of the company then the likelihood is that they remain valid. No doubt collection efforts have been attempted on your friend as well, to no avail. You should address these by investigating the contracts that you signed to verify your PG and also check your Credit Report to see if they are being reported to you. If so, then you should deal with them appropriately. As for the Laws that apply in Illinois, I can only suggest you contact the Illinois Attorney Generals office or website. There are Federal Laws pertaining to debt collections, but most apply to individuals and not businesses. If you are represented by legal counsel they should be able to guide you out of this unfortunate circumstance. Hoping the new year brings you good fortune.


Christine Janklow

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Christine Janklow


As a business debt settlement and restructuring veteran, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please inquire. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.


My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.

Provisors;Turnaround Management Association; Los Angeles area

Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."

Bachelor of Business Administration; Associate of Arts Merchandising

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American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.

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