Legal Question in Business Law in Indiana

How do I get out of an LLC and protect my credit

I was persuaded to go into business with a past associate, We formed an LLC and we were partners I was 49% and he was 51% vested. His credit was bad and my credit was good enough to get a line of credit from a bank. Now the company is closed and my partner is nowhere to be found . The money is gone. What can I do to protect myself and my credit

Asked on 11/03/07, 9:57 am

1 Answer from Attorneys

C. David DuMond Law Offices of David DuMond

Re: How do I get out of an LLC and protect my credit

The bank must be paid or your credit rating will suffer. As a minority shareholder, you were without power, but you appear to be the only responsible party. Which is not the first time that's ever happened. You will have to pay the bank, make sure no more credit is extended to the lost deadbeat (make a written demand to the bank about this), and keep account of all the payments you make so you can later sue your deadbeat partner for his part. And try to dissolve the LLC. Next time, when anyone proposes to use your responsibility, just say, "I'd like to, but my lawyer won't let me." Good luck.

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Answered on 11/03/07, 4:55 pm

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