If I loaned an individual a money but the check was made out to his company, can file for company bankruptcy without being held responsible to pay me back?
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If I loaned an individual a money but the check was made out to his company, can file for company bankruptcy without being held responsible to pay me back?
There was a contract. Can I still go after him personally?
Asked on April 4, 2013 under Bankruptcy Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
What did the contract say? That is critical. If you paid the money to the company, then, in the absence of a contract, the assumption would be that the loan was to the company, not him personally. If the company were a corporation or LLC, then you would be unable to go after him personally--though you could do so if the company was a sole proprietorship.
However, with a written contract, if the contract states that the loan was to him, and he simply directed you to make the check out to the company, or the loan was to the company but he personally guaranteed it, then you could sue him.
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