If a company has closed & there were checks floating around @ the time of such, what, if any, legal action can be taken against the person who signed?

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If a company has closed & there were checks floating around @ the time of such, what, if any, legal action can be taken against the person who signed?

If a company has closed & there were checks floating around @ the time of such, what, if any, legal action can be taken against the person who signed?

Asked on June 19, 2009 under Business Law, Louisiana

Answers:

J.V., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

I am not sure if you mean checks from outsiders to the company or from the company to individuals. If the former than the company has a right to those funds regardless of the intent to close or that they did close. They are still entitled to those funds.

If the latter than it becomes a bit more difficult. If the company wrote checks and than closed there may beno funds to fulfill the checks being cashed. The person who signed the checks does not assume personal liability simply because their signature was on the checks.

What you will need to do is look into your records. Without knowing if this is a check as an employee, for services goods etc I cannot give you a complete answer but you can always post again with more details. You also may want to contact a local attorney and see if they would suggest pursing this matter once they know all the facts. If there was a personal guarantor in the matter they may be liable for these funds, if not than you may not have a viable suit against anyone. I would review with a local attorney and see with all the information whether they advise to proceed or not.


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