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Doctor Credit

Should we require a personal guaranty from a proprietor or a general partnership?

Answer: This is a good question and I can answer it both ways. Here are the two arguments: (1) Yes - signing a personal guaranty makes the debt more real and makes payment more likely. (2) No - in a sole proprietorship or partnership, the assets of the owner or owners are not protected from creditors [as they would be if the debtor were a corporation].

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