Asked in Contracts and Collections for Arizona

Q: Can I be sued for a company loan?

In June 2017 I was president (in name only) of a company located in Phoenix Arizona. In April 2017 the company took out a $10,000 loan for business purposes, however, in June 2017 the company ceased doing business.

The loan was from a company in California. The loan was issued in April 2017 with the last payment being made on the loan on June 23, 2017.

I have recently been contacted by an attorney stating they they are filing a lawsuit on Friday of this week July 21, 2020 unless I can make a deal with them in 24 hours. At no time have I discussed this loan with anyone until today when I asked the attorney to send me documentation regarding the loan so that I could investigate it. The attorney questioned me on ways I could repay the loan and I commented that I do not work and have no assets At no time did I take responsibility for the loan.

If they file a lawsuit, will they win. I thought there was a statute of limitations for suing on a debt?

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2 Lawyer Answers
Joel Gary Selik
Joel Gary Selik
  • Collections Lawyer
  • Las Vegas, NV

A: Being rushed like this is always suspicious and rarely a good idea.

They could lose depending on how documents were signed by you and other factors.

Marcos Garciaacosta agrees with this answer

Marcos Garciaacosta
Marcos Garciaacosta
  • Mesa, AZ
  • Licensed in Arizona

A: You should consult with an attorney.

There are a lot of red flags. And you may be sued just because that is the only name they could contact or locate. You should also review the contract to see how you are implicated.

Also, if they sue and you do nothing you may lose by default.

Collecting the win is a different story.

1 user found this answer helpful

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