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didnt realize i was starting okay here we go personal guarantee what is a personal guarantee doughys here with another dfi 30 explainer video [Music] am i personally liable for a debt i get that question a lot heres how it works a personal guarantee is a legal promise to repay a debt you might give a personal guarantee for a loan to your incorporated business this makes you personally liable if the business fails to make payments you might also personally guarantee someone else is debt there are two ways this can happen first you can be a co-borrower you and your spouse for example might apply for a mortgage together you use your combined credit capacity and income to qualify for the loan you can also be a co-signer this is typically the case when one person maybe your adult child or a friend cant qualify for a loan on their own so you guarantee to make payments if they dont as you can see in each of these cases you signed on the dotted line this is the only way to become personal