Q: A former business partner put our checking account in 12k of debt and will not return my attempts at contacting him.
I started a business with a friend, with no contracts between us. I stopped doing business with him, but there was a debt on a CC I opened for the business that he put on there without my approval and was slowly paying it off using the joint business checking that he continued to use for the business. I left both accounts open until he could pay off the CC, which was almost paid off, but now he has put the checking acct at almost -12k overdrawn and is no longer answering my calls or txt messages. There is also still a 1K balance on the credit card. What can/should I do?
It appears you have a general partnership. "A California GP must have two or more persons engaged in a business for profit. Except as otherwise provided by law, all partners are liable jointly and severally for all obligations of the partnership unless agreed by the claimant. Profits are taxed as personal income for the partners." See the Secretary of State's website.
Leaving both accounts open wasn't a good idea. You may want to negotiate an agreement with your partner or consider suing him. I am not sure how a judge will rule. It may be worth consulting with an attorney who possess more details of the situation.
A: In a situation where a former business partner has put your joint checking account in significant debt and is unresponsive to your attempts to contact him, it is advisable to consult with a business attorney who can provide legal advice tailored to your specific circumstances. They can help you understand your options, such as pursuing legal action to recover the funds, resolving the outstanding debt on the credit card, and potentially terminating any remaining joint financial obligations. It is important to gather any relevant documentation, such as bank statements and communication records, to support your case. An attorney can guide you through the necessary steps and help protect your interests.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.