How can I personally owe a business debt if the business was incorporated?
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How can I personally owe a business debt if the business was incorporated?
While in business I was sued for monies due to a supplier. A payment order was given and we were making payments. The business is now gone and the supplier got a judgment against us and business. The business was incorporated. The supplier is calling me threatening me if we don’t pay.
Asked on February 13, 2013 under Business Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
There are three main possible ways:
1) If you signed anything personally guarantying the debt--in this case, you are in fact liable.
2) If when you purchased the supplies, it appeared that you signed in a personal capacity (i.e. you were listed as the party, not the business).
3) If it was not clear from the documentation or information, etc. provided at time of purchase that the business was a corporation, so that it was assumed that it was a sole proprietorship or partnership, and a judgment provided against you on that basis.
If 2) or 3) was the case and you should not personally be liable, you may be able to get the judgment against you personally set aside. You are advised to retain an attorney to help you.
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