If i signed a promissory note for commercial equipment my company, but did not provide my SSN can i be held personally liable?

Asked over 2 years ago - New York, NY

I opened a trucking company and we leased some repo'd equipment from a bank, we signed a PG as it was a new company, but I did not have to provide my social security number. My ex-partner and I do not speak anymore, and I told the bank i was out of business and gave the bank the addresses of where the equipment was located so they could pick it up. Now I find out, my ex-partner is back in and he has one of the trucks at his new yard with my old company logo still on the side. I dont know if he cut a side deal with the banker or what, but I want to figure out what my liability in this case is. Is it possible he told the banker to sue me for the full cost and bought it back from him on the sly?

Attorney answers (5)

  1. Houston Putnam Lowry

    Contributor Level 10

    2

    Lawyers agree

    Answered . If you sign a personal guarantee for a corporate indebtedness, you are personally liable. The fact you didn't give your social security number in completely irrelevant.

    If the trucks are unregistered, they are governed under Uniform Commercial Code Article 9. If the bank repossessed them without giving you proper notice, then your guarantee is discharged even though the bank may have re-sold the collateral for less than the amount of the debt.

    Under various laws, the bank has an obligation to you as a surety. If they violate that obligation, you might be released as a surety even though the underlying debt has not been paid (this is commonly called a "suretyship defense").

    You need to figure out what the facts actually are and consult a local lawyer.

    I am admitted to practice in Connecticut and limit my responses to CT law.
  2. Frank Jonathan Hariton

    Contributor Level 1

    Answered . You signed a personal guarantee, as did your partner. You have liability. Whether your bank was given your SS# does not have any impact on that. The bank can choose to go after you, your partner, or both,unless there is something in the contrary in the guarantee. If for some reason the bank does not go after your partner for any amounts it is still owed and just goes after you, you can pull your ex-partner into the proceeding to be sure he pays his fair share.

  3. Jeffrey Bruce Gold

    Pro

    Contributor Level 19

    Answered . Not an issue. You are liable. The lack of a social security number is not a defense. You need to meet with an attorney as soon as possible.

  4. John Addison Vos

    Contributor Level 15

    Answered . yes, you signed and agreed to pay for the trucks.
    there is a lot of money at stake, and the trucks are driving around possibly getting ruined or causing injury to pedestrian(s) and so forth. you would therefore be wise to consult with an attorney sooner rather than later.
    also the SSN is a non-starter defense.

    This is general legal information, not intended to apply to your specific case. And I may not be licensed to... more
  5. Joseph Vincent Priore

    Contributor Level 2

    Answered . Yes.

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