If a limited partner personally guarantees a loan made to the limited partnership by a creditor,he or she is not personally responsible for the loan if the partnership defaults,since limited partners are liable for the debts of the limited partnership only up to their capital contributions.

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If a limited partner personally guarantees a loan made to the limited partnership, they are assuming personal liability for the debt. In the event of default by the partnership, the creditor can go after the limited partner's personal assets, regardless of their capital contribution to the partnership.

If a Limited Partner Personally Guarantees a Loan Made to the Limited