Personal Guarantor Practice Master

Practical sequencing when a personal guarantee sits alongside a corporate debtor's CIRP or resolution plan.

Guarantor liability survives the corporate plan

An approved corporate resolution plan does not by itself discharge a personal guarantor's liability for the guaranteed debt (Lalit Kumar Jain) — a creditor may pursue the guarantor's own insolvency process under the notified Part III provisions independently of, and even in parallel with, the corporate debtor's CIRP.

Interim moratorium for guarantors

On admission of a guarantor's insolvency application, an interim moratorium applies to the guarantor's own debts (not the corporate debtor's), and a Resolution Professional prepares a repayment plan for creditor consideration — DRT approval follows a report-driven process distinct from CIRP's CoC-vote model.

Practical sequencing

Where both the corporate debtor and its personal guarantor face potential insolvency, creditors commonly pursue both processes in parallel to maximise recovery — a guarantor cannot assume that settling or waiting out the corporate CIRP resolves personal exposure, and should assess guarantor-specific insolvency risk independently.

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