Legal Question in Business Law in South Carolina

Liabilities of Guarantee after Dissolution of Partnership

I went into a partnership with my brother. At that time, I opened an account as the principal guarantee on the account. As of May 2004, the partnership was dissolved and the company opened under a corporation with 100% ownership going to our father. The accounts did not have anything owing on it at the time of dissolution. In March 2005, I received a letter from one of the accounts I opened, that my fathers corp. was ordering on in excess of $42,000 and they are trying to put a judgement against me because they said I opened the account as the guarantee. These bills were for the months of 9/2004 thru 2/2005. The company is saying because I did not give them any information of the change of ownership that I am still liable for these accounts. The account representative that came into the store on a weekly basis new about the change of ownership but never called for a new application to be on file and also the opening credit line for my account was for $1,000.00. Am I personally liable for this account even though my partnership was not in existence when these bills were incurred and what legal rights do I have to this. This company wants to put a judgement against my property, can they do this?


Asked on 3/15/05, 4:58 pm

1 Answer from Attorneys

Otto Ferrene, jr. Ferrene & Associates, PA

Re: Liabilities of Guarantee after Dissolution of Partnership

Are you liable for a personal guarantee which you gave and did not cancel after you left the business? Based upon what information you gave, yes!

Sounds like you would benefit from an hour of advice from an attorney in your area.

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Answered on 3/15/05, 5:02 pm


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