What are some of the essential elements of Personal Guarantees that are sometimes overlooked?

Answer: Good question. A Personal Guarantee should contain the following elements:

• It must be an unconditional and continuing guarantee.
• The guarantee should describe in detail the manner and method by which the personal guaranty may be withdrawn by the guarantor.
• It should state that the guarantor agrees to pay all collection costs, including reasonable attorneys fees should the matter of collection have to be referred to a third party for collection.
• The guarantee should indicate the venue for any litigation required to enforce it.
• It should state that the creditor is not required to exhaust all legal remedies against the debtor before seeking payment from the guarantor. It should state that the guarantor and the debtor company are jointly and severally liable for the debt of the company.
• A guaranty should always be notarized, with space for the seal and signature of the notary.

To be fully enforceable in a community property State may require the signature of the guarantor and his or her spouse.