Legal Question in Business Law in Georgia
Repayment of Personal Loan from a Corporation
I received a small personal loan (15k) from the start-up corporation in which I was the President/CEO in 2000. I was paying this loan back with a deduction from my paycheck and hadn't payed much back when the financing for the company dried up and the company folded. Subsequently one of the investors (the only secured creditor) has approached me and told me that I owe him the money personally now. Do I owe him the remaining balance on the loan or did it dissolve with the company's demise?
1 Answer from Attorneys
Re: Repayment of Personal Loan from a Corporation
You should consult with an attorney on this. Be perpared to discuss whether you signed a promissory note, location of the original, whether it was negotiated to the investor, etc., etc. This is a fact sensitive area. A promissory note is like a check. It can be negotiated to third parties. If you did not sign a promissory note, an oral promise to pay can be enforceable - so again, you need to discuss this with your attorney.
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