If a LLC member sign a personal garantee with a bank but the spose does not, what is the law say about personal property in a suit against the LLC?

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If a LLC member sign a personal garantee with a bank but the spose does not, what is the law say about personal property in a suit against the LLC?

Asked on July 16, 2012 under Business Law, North Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

A limited liability company is a separate and distinct entity under the laws of all states in this country just as if it was a person. If a person signs a personal guaranty for a limited liability company and the note is not paid, then the individual and the limited liability company can be sued for breach of contract regardless if the spouse of the individual signing the note did not.

If a judgment results, then the personal assets of the individual and the limited liability can be levied upon, including marital property as well as separate property.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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