Am I responsible for joint debt of a line of credit if the money was used for a business that my name is not on?
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Am I responsible for joint debt of a line of credit if the money was used for a business that my name is not on?
Asked on February 12, 2012 under Bankruptcy Law, Virginia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Are you either a signatory to the line of credit, or a guarantor of it? That is, were you one of the people who took the line out, or did you at least guaranty payment for someone else? If the answer to either question is "yes," then you are responsible for payment of the line of credit, even if the money was used for a business that your name is not on. If the money was misused or used under false pretenses by another person, you may have grounds to sue that person for compensation or reimbursement, but you would still be responsible on the line of credit you signed or guaranteed.
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