Creditor Rights: Collateral/Guaranties

One way for individuals or companies, which extend credit to customers or others, to protect their ability to obtain full repayment is to obtain collateral from their debtors for the amounts owed. That way, if a debtor does not timely pay its debt, the creditor can enforce its payment rights by foreclosing on and selling the collateral, often even in spite of a bankruptcy filing. Fox, O'Neill & Shannon, S.C. has extensive experience in negotiating, drafting, and filing collateral agreements.

FOS is also expert at negotiating, drafting and obtaining enforceable guaranties for the payment of amounts owed to its clients. A guaranty provides a creditor with a payment resource, aside from the debtor itself, for repayment of the debtor's obligation. Guaranties may come from a business's principals or other third parties.