Legal Question in Business Law in Colorado

Who are the responsible parties in debt collection?

My husband started his own business, soley in his name, a little over a year ago. It has since been a big flop. He is now getting letters from collection agencies, and now a law firm, in attempts to collect debt. The one I am particularly worried about is the law firm collecting on a four year contract for a credit card machine agreement. They sent a copy of the contract which was signed for 4 years. The outstanding balance is over $2000.00. Can they come after me as well, or will this only affect my husband?

Thank you for your help.


Asked on 10/16/03, 11:21 am

1 Answer from Attorneys
Eric Fisher Law Office of Eric A. Fisher. LLC

Re: Who are the responsible parties in debt collection?

If the business was incorporated (registered with the Colorado Secretary of State as a corporation or limited liability company), then even your husband's personal property could be protected. If not, your personal property should not be at risk if you were not a principal in the business and did not sign the contract. Joint assests might be at risk however, so it might be wise to speak with a bankruptcy attorney.

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Answered on 10/16/03, 11:46 am


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