We lost our business due too imbezzlement within the company. We had to sign a personal guarantee with many of our vendors to get started. Now it has been almost a year and we have a vendor coming after us personally. They are seeking restitution through a summery judgement. What can I do, I don't have any assets now to liquidate because I lost everything when I lost the business. I don't feel that this is fair. Does anyone have any advice?
2006-12-01 15:24:56 · 4 answers · asked by angela r 1 in Politics & Government ➔ Law & Ethics
You've heard form others, now hear from an attorney. It is not the creditor's fault with respect to what happened to your company. The company bought borrow money or purchased products/supplies on credit. You voluntarily agreed to pay the debt if the company could not. Fair has nothing to do with it...you signed a contract and owe the money.
It sounds like you have no defense and the court will most likely grant the summary judgment. You can always try to negotiate a repayment plan or file bankruptcy.
If you haven't already done so, make sure you press criminal charges against the embezzler. You might be able to obtain a criminal restitution order and/or go after that person in a civil judgment. The person who embezzled the money might have assets to go after and get money back in your pocket.
2006-12-01 16:13:05 · answer #1 · answered by Carl 7 · 0⤊ 0⤋
File a bankruptcy case in court and prove it. When a judgment is out, present this to your vendors to prove to them that you have no more funds to pay their debts so that they could course their claims to their insurers.
2006-12-01 16:26:28 · answer #2 · answered by FRAGINAL, JTM 7 · 0⤊ 0⤋
The courts will settle. You may have to pay part of it back, but the judgment will be fair. You will have filed bankrupcy.
2006-12-01 15:29:22 · answer #3 · answered by J G 4 · 0⤊ 0⤋
Yes, see an attorney, and explore the option of filing bankruptcy.
2006-12-01 15:29:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋