im being sued, while in a bankrupcy
i owned a business that had a partner for a short term in the beginning, he left and one the company suing me was aware, since he left i had incorporated and 4 1/2 years went buy, since then i have unfortunintly had to close the business and file bankrupcy, the plaintuff is now suing me and my old partner because his name was on the original credit app. they were totally aware of him leaving, and never updated anything on there end. i knew this supplier on a good personal level so there was nothing hidden friom them. is he liable?? if so is he liable for the full amount or half since we were 50% partners?
Re: im being sued, while in a bankrupcy
A guarantor is personally liable, and usually the guaranty is written so that each guarantor is jointly and severally liable for the entire amount. Corporations don't have partners, so strictly speaking principles from partnership law won't apply. A co-owner of a corporation who didn't sign a personal guaranty is not ordinarily liable for any of the corporation's debts; there are exceptions if the corporation was not run as a separate entity ("piercing the corporate veil") or if the insiders took assets at liquidation time in preference to the creditors (distributions illegal as fraudulent preferences).
This is a terrible trap for people making personal guarantees on behalf of corporations they partially own; the guarantees can out-live their intended life and continue to bind the guarantor long after he has bowed out of active participation. In some cases, notice to the creditor can protect the guarantor from further liability for future purchases, but a well-written guaranty cannot be disavowed for credit already extended.
Re: im being sued, while in a bankrupcy
A guarantor is personally liable, and usually the guaranty is written so that each guarantor is jointly and severally liable for the entire amount. Corporations don't have partners, so strictly speaking principles from partnership law won't apply. A co-owner of a corporation who didn't sign a personal guaranty is not ordinarily liable for any of the corporation's debts; there are exceptions if the corporation was not run as a separate entity ("piercing the corporate veil") or if the insiders took assets at liquidation time in preference to the creditors (distributions illegal as fraudulent preferences).
This is a terrible trap for people making personal guarantees on behalf of corporations they partially own; the guarantees can out-live their intended life and continue to bind the guarantor long after he has bowed out of active participation. In some cases, notice to the creditor can protect the guarantor from further liability for future purchases, but a well-written guaranty cannot be disavowed for credit already extended.
Re: im being sued, while in a bankrupcy
A guarantor is personally liable, and usually the guaranty is written so that each guarantor is jointly and severally liable for the entire amount. Corporations don't have partners, so strictly speaking principles from partnership law won't apply. A co-owner of a corporation who didn't sign a personal guaranty is not ordinarily liable for any of the corporation's debts; there are exceptions if the corporation was not run as a separate entity ("piercing the corporate veil") or if the insiders took assets at liquidation time in preference to the creditors (distributions illegal as fraudulent preferences).
This is a terrible trap for people making personal guarantees on behalf of corporations they partially own; the guarantees can out-live their intended life and continue to bind the guarantor long after he has bowed out of active participation. In some cases, notice to the creditor can protect the guarantor from further liability for future purchases, but a well-written guaranty cannot be disavowed for credit already extended.
Re: im being sued, while in a bankrupcy
A guarantor is personally liable, and usually the guaranty is written so that each guarantor is jointly and severally liable for the entire amount. Corporations don't have partners, so strictly speaking principles from partnership law won't apply. A co-owner of a corporation who didn't sign a personal guaranty is not ordinarily liable for any of the corporation's debts; there are exceptions if the corporation was not run as a separate entity ("piercing the corporate veil") or if the insiders took assets at liquidation time in preference to the creditors (distributions illegal as fraudulent preferences).
This is a terrible trap for people making personal guarantees on behalf of corporations they partially own; the guarantees can out-live their intended life and continue to bind the guarantor long after he has bowed out of active participation. In some cases, notice to the creditor can protect the guarantor from further liability for future purchases, but a well-written guaranty cannot be disavowed for credit already extended.
