[amcarney]

Long story... My husband and I have good credit. He was 24% owner of a Sub-S Corp and Secretary of a Family-run business. Business was struggling. He was coerced/bullied (by his father and his brother) into completing a credit application so that their primary supplier would continue to supply the business with parts and supplies. His brother's credit was lousy - and since his brother was the primary signer, the loan was declined. Fastforward 6 months his brother died. When he brother died, we found out that his brother had stolen well over $100,000 from the business. Additionally, the office manager forged my father-in-laws signature and my husband's signature on some checks. Her theft totals about $46,000. My husband and his father finally agree 4 months later that the business is unrecoverable. Business declares bankruptcy... now because my husband signed a loan application, the supplier is saying that he guaranteed past debts... even though the loan was never finalized. We are now being sued for over $80,000. We have retained counsel and will be fighting this, but what can we do?

[DrJ]

It sounds like you already doing what you can... retain counsel and fight it in court.

While the theft is unfortunate, it sounds like it is irrelevant to the lawsuit. What it seems that it will come down to is how the application process went. If there was already an account established and there was already money owed on the account, your husband may have been added to the account in order to apply for further credit. In which case, he may now be liable for the what is owed on the account.

It will all come out in the fine print.