If you sign a personal promissory note to cover debts owed by your business and the business fails, you will be held personally liable on the debt.

Question

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When you sign a personal promissory note, you are personally guaranteeing to repay the debt owed by your business. If your business fails to pay off the debt, you will be held personally liable for the remaining balance. It is important to fully understand the terms and consequences before signing any legal documents.

If You Sign a Personal Promissory Note to Cover Debts