Legal Question in Business Law in New York

Personal guarante of a corporate debt

My husband started a construction company which I was a shareholder. On the Dept. of State website, it lists me as chairman or chief executive officer. The company was an S corporation. The question I have is regarding a personal guarantee of a debt to a supplier. Here is the problem: My husband filled out the credit application and signed my name. His business has been closed since 12/31/2005. He owed money to this supplier and was unable to pay them back. Can I still be held personally liable for this debt or can I get out of it? I was not an employee of the company nor did I know that he signed my name on the credit application.


Asked on 9/14/07, 9:17 am

3 Answers from Attorneys
Mark S. Moroknek Kelly & Curtis, PLLC.

Re: Personal guarante of a corporate debt

Because your husband signed your name,

you should have no liability. Had you signed your name to personally guanatee the corporate debt, that would be different. It may not be that simple to get rid of the credior however.

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Answered on 9/16/07, 12:30 am
Norman Nadel Norman Nadel, Esq.

Re: Personal guarante of a corporate debt

Based on the facts you presented, you have no personal obligation for the payment of this debt.

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Answered on 9/14/07, 9:54 am
Nancy Delain Delain Law Office, PLLC

Re: Personal guarante of a corporate debt

...but you may have a truly joyous time convincing the creditor that you're not liable.

Contact my law partner offline for a consultation on this matter if you need an attorney; this is his bailiwick.

Good luck.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 9/14/07, 1:56 pm


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