Legal Question in Credit and Debt Law in Virginia
My husband and I have a failed hobby business. We relenquished nearly all of the assests (what we had left in inventory and office equipment) to our secured creditor. A signifigant balance still exsits. He's harassing my husband's parents threatening to sue them claiming they are helping 'hide money' and helped us liquidate our inventory for the sole purpose of defaulting on the loan. Of course this did not happen. In fact they loaned us over $36,000 to try to keep the business going. Since they own property and we do not, he thinks he can get from them the balance of what we owe. We have consulted with a bankruptcy attorney and have been advised not to file bankruptcy yet - neither of us are gainfully employed right now and we have nothing left that we own except about $5000 in automobiles all with leins. We were an LLC, and signed the contracts as such with a personal guarantee from myself and my husband. Is there any possible liability for his parents?
1 Answer from Attorneys
It would be very unlikely that the creditor could get anything from his parents, particularly when they entered into contracts with an LLC. Although they got personal guarantees from you and your husband, they KNEW that they were contracting with a limited liability company and asked for a personal guarantee only from you and your husband.
What they are claiming about your husband's parents would be very hard to prove even if it were true. If it is not true, then they cannot get a dime from your parents.
Unfortunately, your husband's parents could be sued. Anyone can get sued. But the lawsuit would ultimately fail.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
