Legal dictionary

Personal liability

The responsibility of a person to pay a debt or other financial obligation. If an individual signs a promissory note, that individual usually has full personal liability for the debt.

An exception is the unusual situation of a non-recourse individual loan, in which the lender agrees to look only to the collateral for recovery in the event of default.

Was this content helpful?
Looking for something else?
Ask for advice from a lawyer
It’s free and anonymous
No registration needed
Ask a lawyer
Are you a lawyer?
Be found. Register with us and get new leads every day.
Register