What is the name of your state (only U.S. law)? Texas
I have a unique situation. I operate a company that my mother owns. She is disabled and cannot work. I entered into a contract with an advertising agency. (I signed the contract, not my mother) We prepaid for the first month of publishing. The ad was a BOMB!! we didn't recover our initial investment and were unable to pay for the second mailing. The agency mailed anyway. We were unable to pay.
The ad agency filed a lawsuit for over $15,000.00. There is no doubt that we are responsible and will more than likely receive a judgement against us. My facts and questions are as follows:
Facts:
1.) There was no personal gaurantee in the contract
2.) My mother is the sole proprietor and did not sign the contract
3.) She and I both are renters.
4.) There are no assets purchased under the company name.
5.) We still do not have the finances to cover the judgement
Questions:
1.) Is my mother at all liable? (She is not listed in the suit.)
2.) The business bank account is under my mother's SS# not the company EIN.. Can they still garnish the business account? (I am listed on the account as a signer. My SS# is not tied to the account)
Thank you....
James
I have a unique situation. I operate a company that my mother owns. She is disabled and cannot work. I entered into a contract with an advertising agency. (I signed the contract, not my mother) We prepaid for the first month of publishing. The ad was a BOMB!! we didn't recover our initial investment and were unable to pay for the second mailing. The agency mailed anyway. We were unable to pay.
The ad agency filed a lawsuit for over $15,000.00. There is no doubt that we are responsible and will more than likely receive a judgement against us. My facts and questions are as follows:
Facts:
1.) There was no personal gaurantee in the contract
2.) My mother is the sole proprietor and did not sign the contract
3.) She and I both are renters.
4.) There are no assets purchased under the company name.
5.) We still do not have the finances to cover the judgement
Questions:
1.) Is my mother at all liable? (She is not listed in the suit.)
2.) The business bank account is under my mother's SS# not the company EIN.. Can they still garnish the business account? (I am listed on the account as a signer. My SS# is not tied to the account)
Thank you....
James