Personal Guarantee Exposure
The quiet risk in most closures is the personal guarantee behind a lease or loan. Enter each PG — remaining lease rent and loan balances — to see the total you personally owe, and whether your home is on the line.
This calculator provides estimates for educational use only. It is not tax, legal, or financial advice. Figures are based on current IRS rules — verify against IRS.gov or consult a licensed professional. See our full disclaimer.
Your Personal Exposure
Total Personal Exposure
* Estimate from your inputs. PG terms vary by contract; entity bankruptcy does not discharge a personal guarantee. Not legal advice — confirm with an attorney.
What This Tool Shows
Lease PG
Remaining rent exposure under a signed lease guarantee.
Loan PG
Outstanding loan balance you personally back.
Home-Equity Flag
Flags when a pledged residence is at risk.
Total Personal Exposure
One number for the liability that survives closing.
Authoritative References
- Small-business lending surveys on personal guarantees (retrieved 2026-08-13).
- Bankruptcy-treatment-of-guarantees summaries — entity bankruptcy does not discharge a PG.
Estimates only. PG terms vary by contract; this is not legal advice. Confirm your exact obligations with an attorney.
Personal Guarantee FAQs
Very. Roughly half of small-business owners have signed at least one PG; about a third pledged their home. Among loans under $500K, the vast majority require a PG.
No. The entity’s bankruptcy discharges the company’s debt, not your personal guarantee. Only a personal bankruptcy (Ch 7 or 13) can address it, with its own tests and asset exposure.
Sometimes — a payoff or partial release tied to an orderly handover is easier before you default. Raising the topic early, while you still control the exit, helps.