Legal Question in Business Law in Washington

Business contract by lending money

I lend money to a friend for his business. He signed a business loan to pay interest and pay off within 3 years full amount of loan. However he went out of business within a year, he sold inventory to pay off debtors except me. What are remedies ? The loan was made with s corporation (my supposely friend was into car busines)


Asked on 1/14/09, 6:36 pm

1 Answer from Attorneys
Susan Beecher Susan L. Beecher, Atty at Law

Re: Business contract by lending money

Your remedies will depend on several things. First, what are the terms of the business loan? Did he personally guarantee it? Second, did he go bankrupt, or did he just go out of business? If he just went out of business, paid off all the other creditors (or even just some of the other creditors) but then took money out of the corporation for himself, you may have recourse against him personally, even if he did not personally guarantee the debt.

You may want to discuss the details with an attorney, and have him or her look at the paperwork you and your former friend signed.

Read more
Answered on 1/14/09, 7:20 pm


Related Questions & Answers

More Business Law questions and answers in Washington