Skip to main content

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

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 ?

+ Read More

Attorney answers 4

Posted

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.

Posted

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.

Posted

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."

Posted

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-client relationship with anyone. None of my comments should be relied on in taking legal action without first consulting an attorney.

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer