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Texas Civil Judgement, Need Help Please!

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Windowman

Junior Member
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
 


JETX

Senior Member
1.) There was no personal gaurantee in the contract
Not relevant.

2.) My mother is the sole proprietor and did not sign the contract
But you were clearly signing as an 'authorized agent' for your mother.

3.) She and I both are renters.
Not relevant.

4.) There are no assets purchased under the company name.
As a d/b/a, company named assets are not relevant. An owner of a sole proprietorship is personally liable for personal AND company debts.

5.) We still do not have the finances to cover the judgement
Just means the creditor will have to work a little harder to enforce the judgment.

1.) Is my mother at all liable? (She is not listed in the suit.)
If the suit names the d/b/a, yes.

2.) The business bank account is under my mother's SS# not the company EIN.. Can they still garnish the business account?
Yes.
 

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