Guaranty Litigation and Recoveries

The range of different types of guaranties and the particular circumstances which trigger guaranty liability are extremely varied. For example, there are guaranties of payment, guaranties of collection and “bad boy” guaranties which import guaranty liability into nonrecourse lending situations if certain acts are committed (i.e. a voluntary chapter 11 filing by the borrower) or conditions are permitted to arise (i.e. waste or environmental contamination).

Guaranties are not self-executing and often are not collateralized. Any commercial lender or other holder of a guaranty will normally find itself having to vigorously take the offensive to collect upon a guaranty. Filing suit and obtaining a judgment are often only the first steps towards collecting upon a guaranty. Asset protection strategies and statutory limitations with regard to limiting creditors to the charging order remedy when collection against membership interests in limited liability companies can pose serious roadblocks and challenges to guaranty judgment collection.

The attorneys of Rose Law Group have the depth of experience and knowledge to go far beyond the surface in utilizing post-judgment discovery and collection procedures. This includes, but is not limited to, challenging asset protection structures on alter ego theories, third party discovery and collection, foreign asset discovery and collection and fraudulent transfer and trust fund theory challenges to various efforts to divert assets from the reach of guaranty judgment creditors.

Attorneys of the Rose Law Group team possess numerous credentials attesting to their expertise and specialization in guaranty litigation and claims. These credentials include, but are not limited to, Certified Business Bankruptcy Specialist, American Board of Certification; Certified Creditors’ Rights Specialist, American Board of Certification; and Certified Bankruptcy Specialist, State Bar of Arizona Board of Legal Specialization.

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In The News

Resolution Copper welcomes next phase in public review and comment

(Disclosure: Rose Law Group represents Resolution Copper.) By Rose Law Group Reporter Superior, Ariz. (January 15, 2021) – Resolution Copper welcomes the next phase of public review and comment with the release by the US Forest Service (USFS) of its Final Environmental Impact Statement (EIS) for the Resolution Copper Project. “The Final EIS is an important step in the ongoing permitting process, reflecting

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Arizona judge issues first ruling in Prop 208 case

(Disclosure: Rose Law Group represents Ann Siner of My Sister’s Closet and Judge John Buttrick in their litigation efforts against 208.) By Rose Law Group Attorney David McDowell, Madelaine Braggs | Rose Law Group Reporter Exclusive The first ruling was issued Thursday in the legal challenge filed after the enactment of Proposition 208, which Rose Law Group attorneys argue is unconstitutional. The motion for temporary

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New SBA grant program to provide relief to live venues, museums, movie theaters, promotors and talent reps

By Dan Gauthier | Rose Law Group Reporter This group of businesses and individuals severely affected by the COVID-19 pandemic receive special attention in the new COVID-19 relief act: live venue operators and promotors, theatrical producers, live performing arts organization operators, museum operators, motion picture theater operators, and talent representatives (referred to as “shuttered venue operators” in the act). The second COVID-19

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