A personal guarantor is essentially a borrower who has provided a guarantee or promise to pay in case the borrower fails to repay the loans. Ideally, then, should a company default, the guarantor can be held liable to repay. However, a lot may actually depend on how many assets the guarantor actually has at the time of recovery.
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According to Akshat Khetan, founder of AU Corporate Advisory and Legal Services, while, corporate insolvency has registered valuers, prescribed methodologies and a fair-value-versus-liquidation-value exercise under the CIRP Regulations, the personal insolvency framework leans heavily on what the debtor discloses…