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I sold my half of business partnership 3 years ago, can I still be personally liable for unsecure line of credit
Diamond Bar, CA
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Posted about 1 month ago in Partnership
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I sold my all my 50% share business to my business partner ( 50/50 ) 3 years ago due to illness.
I find out 3 month ago he used 35K of the 100K line of credit the company has with BOA...which I forgot to close when I sold him the company. I have great credit so all was applied using my name as primary. Both our names are on the credit line. I was not informed when he try to use the credit line. I only find out because it showed on my online banking statement. BOA said we have to paid the 35K to close it. They can not take my name out although I sold the co to him 3 years ago. No other options. He is not able to pay up the 35K to close it right away. What can I do to protect myself in case he goes bad? What can I do to stop the other 65K from being used. Please help. Thanks! Answers (1)
Steven Alan Fink
This attorney is licensed in California.
Posted about 1 month ago.
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One easy way to prevent balance from being used is to take out $50,000. That leaves him to use his half. Another way is for you to pay the $35,000 and have him give you a note for $35,000. Then you can close the line.
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