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  1. #1
    Join Date
    Jan 2012
    Posts
    2

    Default Can I Be Held Liable for Unpaid Debt with an LLC

    My question involves business law in the state of: Texas

    Last year, I along with 2 other people started an event planning company. We had our first event, and hired several suppliers...including a draping company. Due, to circumstances beyond our control...the event was a huge flop. We lost thousands of dollars, and unfortunately had only one outstanding debt remaining for $1500 to the drape company. The company was closed, including our po box and bank account. Unfortunately, we completely overlooked the remaining debt to the drape company, and apparently they continued to send notices to our closed po box. Last month, we were reminded of the debt when the police (6 cars to be exact) arrived at my job and arrested and handcuffed me for grand theft. Later, upon being booked..I found out that the company had issued a warrant for my arrest and that because the debt was over $1500 it is a felony. NOW I have to go to court, hire an attorney, and hopefully get this debt expounged from my record. What is my recourse in this situation?? The company is an LLC and I thought that I was protected? Please help? I need some legal advice on how to proceed. I will be going to court the end of the month and really don't have the extra money to try to settle the debt AND pay the high attorney fees? I just want to know what options I have at this point.

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Can I Be Held Liable for Unpaid Debt with an LLC

    Was this a rental situation? Generally, criminal charges do not stem from debts. If you neglected to return rental property it could be theft. If there is fraud it might elevate to criminal level.

    Was your name on any of the contracts/agreements?
    You need a lawyer if you are facing felony charges.

  3. #3
    Join Date
    Jan 2012
    Posts
    2

    Default Re: Can I Be Held Liable for Unpaid Debt with an LLC

    Yes, it was a rental and all items were returned in perfect condition. It is simply a debt, as I mentioned the ONLY debt that we had ever incurred The business has no history of fraud, or anything else that would cause them to take such drastic actions over a $1500 debt. Due to the amount, it is considered a felony in the State of Texas and so it is not simply enough to make an offer to settle it. There are the criminal charges that need to be dealt with as well. However, my question is still...how can they prosecute me if the company is a Limited LIABILITY Company? My name is on the check, however it is not on the rental agreement/ contract with the vendor.

  4. #4
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: Can I Be Held Liable for Unpaid Debt with an LLC

    Huh? What check? Did you bounce a check? Even in Texas "debts" are not crimes in themselves. There's more going on than you're telling us. Go get a lawyer, I don't have time to try to extract the details from you if you're not going to be forthcoming.

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