Should You Sign a Personal Loan Guarantee?

Before you sign a personal guarantee for a small-business loan, read the fine print

Illustration by Harry Campbell for TIME

We all know that if we don't pay our mortgage, our home can be foreclosed on. We know that if we don't make our car payments, our car will be impounded. But I bet not every small-business owner fully gets that if you sign a personal guarantee for a loan or line of credit and your business ends up defaulting, everything you own can be seized, including your house, wedding rings and, in some states, joint bank accounts. Your wages can be garnisheed, as can your life-insurance policies. Bottom line: anything that looks juicy to the bank is up for grabs.

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