Being sued for account opened in my name- California

[TheIrishman]

Forum Attorneys and members-

Ex wife opened a credit line (one of many) with a wholesaler distributor for a business we owned, but she operated. She signed my name as the primary borrower and her name as the other borrower. I was not aware of the account as a credit line, but I was under the assumption that it was for what is called 30 day net terms (year 2015).

Fast forward to a nasty divorce, protective orders etc (year 2016). I am prohibited from entering the business or doing any business related to the store. The business fails and I find out that she opened multiple accounts in my name, never paid sales tax and charged up a credit line. I receive notice about a lawsuit for the credit line she opened with my information. I appear once because I was served, this is around June 2016.

In 2017 I regain access to the email that serviced the business. I find the contract that I signed. It is not my signature. I also find numerous emails from my ex where she is negotiating with the wholesaler to repay the credit that was extended, around $12k. In the mean time, the assets from the business have been sold off without payment from the business that took them (a whole different story).

Dec. 2018, I receive notice that I have an order of examination since, at some point, I lost a default judgement.

I contact the attorney who represents the wholesaler and explain the contract issues. He tells me nothing can be done. I file a motion to vacate and I lose (without prejudice) because I did not file it timely and proof of service was on a family law form, not civil. The order of examination will go forward.

I filed a police report about the credit my ex took out in my name. The case was accepted and is being investigated. I will add the other 5-10 accounts to the report in time.

The other attorney has repeatedly steered me in the wrong direction while saying "I can't give you advice but.." and I confirm the correct action with the clerks office.

My questions is:

After the examination should I just re-file a motion to vacate? Or is there a better way to resolve this. The case is born out of a crime, ID theft, and I don't think I should be responsible yet again for my ex's poor choices.

Thanks

 

[quincy]

You were co-owner of the business at the time these debts were incurred?

 

[TheIrishman]

You were co-owner of the business at the time these debts were incurred?

DBA husband and wife. The licensing was in my name.

 

[quincy]

You might want to review your business operating agreement to see what your wife was permitted to do under its terms.

Did she sign documents with just "your name" or with "your name DBA your business name?"

The reason I am asking these questions, by the way, is that the creditors may have a legitimate claim against you, even if you didn't personally sign anything.

A note: Your ex-wife's attorney is not your attorney. He represents the best interests of his client. You should only take advice from your own attorney. And a court clerk cannot provide legal advice.

 

[TheIrishman]

I understand the opposing counsel’s objective. That wasn’t the point of mentioning it, the point was he is intentionally steering me astray. He doesn’t represent my ex, he represents the lender.

Back to the question. Do I have recourse if an account was opened in my name? My ex was not authorized to commit me or anyone else to financial obligations.

 

[quincy]

Sorry I misunderstood. The lender's attorney has no obligation to you. He represents the best interests of the lender.

The answer to your question is "maybe." Even if your wife (now ex-wife) signed your name on business loans/credit lines, you were co-owner of the business at the time these loans/credit lines were made.

You COULD be held responsible for these debts. A lot more information is needed about your business operations and how the documents were signed.