Question 1

What personal liability does a guarantor face in Florida?

Accepted Answer

A Florida guarantor faces personal liability for the guaranteed obligation, meaning the creditor can pursue the guarantor's personal assets: bank accounts, investment accounts, real property (subject to homestead exemptions), vehicles, business interests, and future income. Florida's homestead exemption protects the guarantor's primary residence from creditors (Article X, Section 4, Florida Constitution), providing significant protection. However, other personal assets are exposed. A judgment against a guarantor can be enforced for up to 20 years (with renewal) under Florida law.

Question 2

How can a guarantor protect themselves in Florida?

Accepted Answer

Protection strategies: negotiate a limited guarantee (cap the dollar amount or time period), require the creditor to exhaust remedies against the primary obligor first (collection guarantee), maintain assets in protected forms (homestead, retirement accounts, tenants-by-the-entirety property for married couples, insurance products), structure business entities to separate personal and business assets, negotiate release provisions (automatic release upon certain conditions), obtain indemnification from the primary obligor, and consult with an asset protection attorney before signing. Florida's strong homestead protection and tenants-by-the-entirety protection provide significant shields for guarantors.

Question 3

What defenses does a guarantor have in Florida?

Accepted Answer

Available defenses: the guarantee was obtained through fraud, duress, or undue influence; the creditor materially modified the underlying obligation without the guarantor's consent; the creditor impaired collateral that would have satisfied the obligation; the statute of limitations has expired on the guarantee; the guarantee fails for lack of consideration; the primary obligation has been paid or discharged; the creditor failed to provide required notices; and the guarantee is unconscionable (so one-sided as to be unenforceable). The guarantor generally cannot raise defenses available to the primary obligor unless the guarantee specifically preserves those rights.

Guarantor Personal Liability Obligation

Guarantor Personal Liability in Florida

Exposed Assets

Protection Strategies

Defenses

Related Terms

Barnes Walker Business Law

Ready to Get Started?