If i own no stock in a corporation but am an officer that signed a personal guarentee, am i liable for the debt ?

Asked over 2 years ago - Los Angeles, CA

My father was inactive as the owner, so as VP I signed a few personal gaurentees on behalf of the corp. I am no longer the VP and hold no position in the corp. am I still liable for the debt ?

Attorney answers (4)

  1. Robert Forman Smith

    Contributor Level 8

    11

    Lawyers agree

    Answered . Without more information, the short answer is probably yes. I recommend you contact a lawyer who will need to review the documentation to determine the extent of your potential liability.

    Thanks.

  2. L. Maxwell Taylor

    Contributor Level 20

    7

    Lawyers agree

    Answered . The whole idea of a personal guarantee is that if the debtor defaults, the personal guarantor is on the hook. So if you personally guaranteed a debt, that means they can come after you, at least under general principles of law.

    Not legal advice, just my two cents on the facts you describe based on general principles of law. If you need legal advice, please consult a lawyer who holds California licensure. I don't hold California licensure and don't practice law in California.

    Good luck.

  3. Kenneth Allyn Sprang

    Contributor Level 15

    7

    Lawyers agree

    Answered . If you signed the guarantees personally for the corporation, more than likely you are liable if the corporation does not pay. I am assuming that you executed the guarantee saying something like "I, John Smith, guarantee the debt of XYZ Corporation."

  4. Sean Anthony Brady

    Contributor Level 15

    3

    Lawyers agree

    Answered . If you are being sued you should speak with an attorney immediately.

    Michel & Associates,
    (562) 216-4444

    All my comments here are intended for general legal purposes. None of my comments here establish an attorney-... more

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

27,109 answers this week

3,007 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

27,109 answers this week

3,007 attorneys answering