Business Law Today, Comprehensive 10th Edition by Roger LeRoy Miller

Exercise 1

Discharge. Caroline McAfee loaned $400,000 to Carter Oaks Crossing. Joseph Harman, Carter's president, signed a personal guaranty for the loan. Later, Harman obtained a discharge in bankruptcy under for his personal debts. His petition did not list the guaranty among the debts. When Carter defaulted on the loan, McAfee sought to collect the unpaid amount from Harman based on the guaranty. Harman argued that the guaranty had been discharged in his bankruptcy. Is Harman correct Why or why not