Personal guarantees; worth the paper they are printed on?

[Larry Bowers]

If I have a borrower sign a personal guarantee on a loan that is unsecured by property, let's say $300K, and he doesn't pay after a while, of course I can't foreclose. There is no security. But as for the personal guarantee, what exactly does this mean, and in this case, is there truly any recourse? Is the personal guarantee worth the paper it is printed on?