Legal Question in Credit and Debt Law in Texas
Old Guarantee
In 2000, i was part owner (stockholder) V.P. in a small mfg co. (c corp.) I signed a credit app for company x that had a personal guarantee included. (I am told it had a continuing clause)company x was sold to company y. we did not owe money to company x at the time. later, we sold our company (stock sale) and I left the company. we did not owe company y any money at that time. After the sale, my old company continued to do business with company y and incurred some debt and folded. company y merged and formed a new company. Now, a collection atty has uncovered this old credit app and threatening legal action. I knew the people at company x and y and they were not using my guarantee as a basis for extending credit. It's just an old doc that was dug up by this collection atty. Do I need to worry? What legal grounds do I have in defense? What legal grounds to they have? Do these things continue on forever even after companies on each side change several hands and I have nothing to do with them?
3 Answers from Attorneys
Re: Old Guarantee
A personal guaranty is just that -- personal by you - unless properly revoked in writing. Sounds like a loose end in folding your company left you on the hook for a debt that you had nothing to do with. You could hire a lawyer, but you're money might be better spent trying to negotiate a settlement. Good Luck.
Re: Old Guarantee
Probably...but put in writing your reasons for not being liable...and if sued, get a lawyer..
Re: Old Guarantee
Probably...but put in writing your reasons for not being liable...and if sued, get a lawyer..
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