Can a person be held personally liable for a debt?

If you personally misrepresented or lied about any facts when you were applying for a loan or credit on behalf of your corporation or LLC, you could be held personally liable for the debt.

Can a spouse be held liable for a common law debt?

In community property states, just as in common law states, one spouse will still be held liable for any debts in their own name or any debts they co-sign for. But, unlike a common law state, in community property states all debts incurred by either spouse during the marriage are shared equally, regardless of whose name is on the account.

When are you personally liable for LLC or corporate debt?

Overview of Corporate Limited Liability. When you form a corporation or an LLC it becomes a separate legal entity apart from its owners. This means that the business itself can own assets, enter into contracts, and is liable for its own debts.

Can a hospital Sue you for medical bills?

The hospital itself can also file a lawsuit against you. However, if your unpaid bill amount is only $1000, then the hospital may not sue you since the legal expenses can be more than that. The attorney fee is likely to be between $200 and $400 per hour.

If you personally misrepresented or lied about any facts when you were applying for a loan or credit on behalf of your corporation or LLC, you could be held personally liable for the debt.

Can a debt collector Sue you for past due money?

In some cases, creditors or debt collectors can sue you for past due debts. After a certain amount of time, a debt is no longer legally enforceable, and, if you can prove it, you can avoid a lawsuit judgment. It is why debt collectors use threats and intimidation (such as calling you on Thanksgiving) to collect money owed.

When is a partner liable for a business’s debts?

This means that if there aren’t enough business assets to pay the partnership’s debts, and your partners are broke, creditors can take your partner’s personal assets to pay all of the business’s debts, not just your pro rata share of the debts.