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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Liability of debtor's spouse... Posted by Ward-CA- on May 05, 2010 at 4:28 PM In Reply to: Thanks Ward, one more question posted by Derek on May 05, 2010 at 9:29 AM Derek, If the debtor's wife did not sign the guaranty, then she's not personally liable for the debt, nor is her community interest share in any property forfeit either. --------Ward ============= : Thanks Ward. I looked at the note this morning and there is a 'continuing unlimited guaranty' attached to the note that makes him personally responsible as well. But at the end of that guaranty, just before his signature it says "In Arizona the Guarantor's spouse must also sign this Guaranty for community property purposes." His wife did not sign the note or the 'continuing unlimited guaranty'. Does that mean anything? : Thanks for your help. : : : Derek, : : 1. If the owner signed as a guarantor for his corporation, then he's jointly and severally liable for the balance of the loan. : : 2. No, you have to voluntarily agree to be personally liable for the debts of another entity. : : 3. The abstract of judgment will attach to any real property owned by the corporation, in the county where the abstract of judgment was recorded. : : Good luck, : : ---------Ward : : ================== : : : we're taking a property in phoenix (maricopa county arizona) subject to existing loan (loan made in 1990 so there is plenty of equity as is). preliminary title report came back with the loan on it and a judgment attached to the property. the judgment is against the owners corporation. his corporation is 'his name, inc.' (John Doe, INC.). it was a business loan made to his corporation that he defaulted on two years ago with chase bank. my question is ... : : : is he personally responsible for the loan or is his corporation soley responsible for the loan? can they make you personally responsible for a business loan like that? if just the corporation, can/should it attach to the property? i thought it would only attach to any property owned by the corporation. the deal is good enough that i will probably pay the creditor a small amount just to get the judgment/lien released from the property so i can just move forward with the deal and be done with it. : : : thanks for your help Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Derek, : If the debtor's wife did not sign the guaranty, then she's not personally liable for the debt, nor is her community interest share in any property forfeit either. : --------Ward : ============= : : : Thanks Ward. I looked at the note this morning and there is a 'continuing unlimited guaranty' attached to the note that makes him personally responsible as well. But at the end of that guaranty, just before his signature it says "In Arizona the Guarantor's spouse must also sign this Guaranty for community property purposes." His wife did not sign the note or the 'continuing unlimited guaranty'. Does that mean anything? : : Thanks for your help. : : : : : Derek, : : : 1. If the owner signed as a guarantor for his corporation, then he's jointly and severally liable for the balance of the loan. : : : 2. No, you have to voluntarily agree to be personally liable for the debts of another entity. : : : 3. The abstract of judgment will attach to any real property owned by the corporation, in the county where the abstract of judgment was recorded. : : : Good luck, : : : ---------Ward : : : ================== : : : : we're taking a property in phoenix (maricopa county arizona) subject to existing loan (loan made in 1990 so there is plenty of equity as is). preliminary title report came back with the loan on it and a judgment attached to the property. the judgment is against the owners corporation. his corporation is 'his name, inc.' (John Doe, INC.). it was a business loan made to his corporation that he defaulted on two years ago with chase bank. my question is ... : : : : is he personally responsible for the loan or is his corporation soley responsible for the loan? can they make you personally responsible for a business loan like that? if just the corporation, can/should it attach to the property? i thought it would only attach to any property owned by the corporation. the deal is good enough that i will probably pay the creditor a small amount just to get the judgment/lien released from the property so i can just move forward with the deal and be done with it. : : : : thanks for your help [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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