Legal Question in Business Law in Illinois

Partner owes me money, nothing in writing, only verbal

Two friends started remodel company, I bought in at 70K about a year later and was a 20% owner. After coming aboard, a number of company purchases (van, computers, credit cards) were guaranteed under my name. Now that the corporation has dissolved, I'm left holding over 30K in debt, of which, my partners don't want any part of. I know that as the guaranteed party it is my responsibility to see that these bills are paid, but the companies name is also on all of the debt associated with it and I just don't see how the officers can get off. From what I can gather, the verbal agreement that we all had from the onset won't hold up in court and I'm going to be left paying out of my pocket. Is this true and is there anything else I can do?


Asked on 10/11/05, 4:17 pm

1 Answer from Attorneys
Lawrence A. Stein Aronberg Goldgehn Davis & Garmisa, LLC

Re: Partner owes me money, nothing in writing, only verbal

You have a right to seek repayment from the corporation and possibly from the other owners, especially if the other owners guaranteed the debts too. To enforce your right, called contribution, you will have to either sue the corporation and its other shareholders, or allow the creditors to sue you, and then bring in the corporation, and the other shareholders, into the litigation. If you are successful in the litigation, the corporation will owe you dollar for dollar what you have to pay out, but the corporation likely will not have any money. Any other guarantors of the debt may owe you the portion of the debt you had to pay that exceeded your share of the debt, probably 20%. Call me. Larry Stein.

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Answered on 10/11/05, 4:25 pm


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