have court date for business am in name as leaseholder only, havent dealt with business for 10 months.
2007-03-27 01:05:37 · 6 answers · asked by sam j 1 in Politics & Government ➔ Law & Ethics
If you are listed as a responsible party for the business and the business acquires debt than you can be held liable for it even if you had no part in the acquisiton of that debt. The only relief you might find is if you can demonstrate that another party ran up the debt in a fraudulent fashion.
2007-03-27 01:08:19 · answer #1 · answered by thexrayboy 3 · 1⤊ 0⤋
Well if you learnt to write properly you might also read properly and understand that if you are a PARTNER in a business that unless the liabilities of each of the partners is limited by inclusion in the partnership agreement (which must be in writing) then it is considered a simple partnership and each partner is equally entitled to a share of the profits but is equally liable for all debts of the partnership regardless of who incurred them.
The only way I see you getting out of it is to prove the other partner acted in a manner which a document or other "instrument" stated he was not to do. For example if your partnership agreement stated that the partner concerned was not allowed to do certain things or to acquire property or loans without the written consent of the other partner/s and that he went ahead and did those things without authority then you might be able to wriggle out of it. I suggest you go talk to a lawyer and take your (hopefully) written partnership agreement with you. If you do not have a written partnership agreement then you are cactus!
2007-03-27 08:27:45 · answer #2 · answered by Traveller 4 · 0⤊ 0⤋
It may have been a good idea at the start but if you didn't legally end the relationship you are stuck with it.
You could be liable for all of it if the other party has no assets & it isn't a limited partnership.
If it was a limited partnership & you didn't pledge your personal assets for it you could be limited in your loses to what you put up at the start.
So you had best have all your paper work together & it wouldn't hurt to have legal help.
2007-03-27 08:27:16 · answer #3 · answered by Floyd B 5 · 1⤊ 0⤋
Depends. Is it a sole proprietorship you sold to someone, a partnership, or a corporation? If its a limited liability partnership then the amount of debt you are forced to pay that was run up by the other partner is restricted. Otherwise unless you can prove fraud and theft of assets you owe an equal amount of the debts just like your partner. You will have to sue him. Sounds like you need an audit by a cpa firm and a lawyer.
Best of luck!
2007-03-27 08:20:14 · answer #4 · answered by cinderpainter 2 · 1⤊ 0⤋
Sounds like a question the new DEMOCRATIC PRESIDENT will be asking after upcoming elections
2007-03-27 08:13:26 · answer #5 · answered by Anonymous · 0⤊ 1⤋
if you got paperwork to say someone else had control ie signatures etc maybe
2007-03-31 02:08:27 · answer #6 · answered by MILL 3 · 0⤊ 0⤋