Situation
A personal guarantee is being called
A creditor is enforcing a personal guarantee you signed. The company's status doesn't protect you here — the guarantee creates a separate personal debt. Call the National Debt Helpline on 1800 007 007 today. Do not transfer assets to family members or refinance into a worse product before that call.
Three things to do right now
- 1
Call the National Debt Helpline on 1800 007 007.
Free, specialist personal financial counselling. They will help you understand whether to negotiate, settle, or look at a Part IX debt agreement or bankruptcy.
Today, Mon–Fri 9:30am–4:30pm (chat 9am–8pm)
- 2
Do not move assets before that call.
Asset transfers made after a guarantee is called can be reversed under the Bankruptcy Act 1966. The instinct to protect the family home or savings is understandable; the legal mechanics often make it worse, not better.
Now
- 3
Pull the guarantee out of the file.
Confirm what was actually guaranteed, the cap, and whether it is joint and several with any co-guarantor. NDH will ask for this on the call.
Key facts (checked May 2026)
- A personal guarantee is a separate personal debt
- Even when the underlying obligation is the company's, the guarantee creates a contractual debt owed by you as an individual. The company entering liquidation does not extinguish the guarantee.
- The personal-debt counsellors are the right call
- The National Debt Helpline (1800 007 007) handles personal debt cases including called-in guarantees. The Small Business Debt Helpline can handle both halves if you are still trading.
- Asset transfers can backfire
- Transferring assets to a spouse, family member, or trust after a guarantee is called can be unwound under the Bankruptcy Act if you later become bankrupt. Get advice before any such transfer.
Who to call
Free or low-cost. Independent of creditors. Checked May 2026.
National Debt Helpline
Free, confidential personal financial counselling — for the personal side of a sole trader's debts, or anyone whose business has folded and is now dealing with creditors as an individual.
Specialist personal financial counselling. The right first call.
Small Business Debt Helpline
Free, confidential, specialist financial counselling for sole traders and small business owners — tax debt, BAS, supplier pressure, insolvency options.
If you are still running a business as well — they can handle both halves.
AFSA — Find a Practitioner
The official register of registered trustees and debt agreement administrators for personal insolvency. The sole-trader insolvency path goes through AFSA.
If a Part IX debt agreement or bankruptcy is on the table, only AFSA-registered practitioners.
Beyond Blue NewAccess for Small Business Owners
Free six-session mental health coaching for small business owners under stress. Coaches have small business backgrounds. No GP referral required.
Six free coaching sessions for owners under pressure.
We do not refer to commercial debt-relief operators.
Every service we point you to is free or low-cost, government-funded or not-for-profit, and independent of creditors. If a paid operator is offering to negotiate your ATO debt or run a Part IX agreement for a fee, talk to the Small Business Debt Helpline first — 1800 413 828, free.
Frequently asked questions
- If my company goes into liquidation, does that release my personal guarantee?
- No. A personal guarantee creates a separate contractual obligation between you and the creditor. The liquidation of the company does not automatically extinguish it. The creditor can pursue you for any unpaid balance after recovering from the company.
- Can I transfer assets to my spouse to protect them?
- It is usually unsafe. Transfers made when you are insolvent or in anticipation of insolvency can be unwound under sections 120 and 121 of the Bankruptcy Act 1966. Talk to the National Debt Helpline (1800 007 007) before any such transfer.
- What is a Part IX debt agreement?
- A Part IX debt agreement is a formal arrangement under the Bankruptcy Act 1966 where you make an offer to your unsecured creditors. It is an alternative to bankruptcy with its own consequences, including a listing on the National Personal Insolvency Index. The maximum unsecured debt limit is currently $150,950.80 (March 2026 indexation under Bankruptcy Act s185C), re-indexed on 20 March and 20 September each year. Use only AFSA-registered administrators and call NDH first.
Sources
TEKVA provides information, not financial counselling or legal advice. Use this page as a starting point, then talk to a free specialist. The Small Business Debt Helpline is 1800 413 828.
This can get clearer from here.