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Gerald, Esq
Gerald, Esq, Lawyer
Category: Legal
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Experience:  30 years of experience
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Bank wants me to sign loan papers on a debt they modified

Customer Question

Bank wants me to sign loan papers on a debt they modified from a line of credit to an installment loan. The credit line grant was signed years ago by my S. Corp but I had a personal guarantee on it. Corp closed 3-31-2013 still owing on the line, but bank wants me to sign the new loan as a corporate officer with loan made out to company. Since company is closed formally at state and federal levels, how can I sign? I am willing to sign personally.
Submitted: 8 months ago.
Category: Legal
Expert:  Gerald, Esq replied 8 months ago.

Hello,

Thank you for using Just Answer. I want to provide you the best service I can. Please feel free to ask any follow up questions you have.

I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.

If the company is now defunct you can't sign the loan on behalf of the company. There is no company to sign the loan for. If the state believes you have revived the company you could face corporate tax liability.

Is this loan in default? If so when did it go into default? Before you make any commitments to a new loan check the Statute of Limitations for your State on debt. It may be that collection on the loan is time barred. If so you may not want to do anything with it. Check this link:

http://www.bankrate.com/finance/credit-cards/state-statutes-of-limitations-for-old-debts-1.aspx

This will raise additional questions if te debt is defaulted and time barred, so please let me know.

Otherwise, If you are trying to have this old loan retired, see if you can negotiate an entirely new personal loan to pat off the old one.

I hope the information I provide is useful to you. I want you to be comfortable and satisfied with my attempt to assist you. Please, if you have ANY follow up questions, feel free to ask. Please note that I am generally unavailable Friday evening through Sunday.

Please do not forget to give me a positive rating. It adds nothing to your costs but it helps me greatly. Thank you.

If you are dissatisfied with my response PLEASE let me know before giving me a negative review so that I may try to be of better assistance. Or if you prefer, let me know and I can “Opt Out” and your question can be re-posted without additional cost to you. I will be fair to you and only ask the same from you.

Good luck.

Please note: Information is educational and not given as legal advice. Only your local attorney can give legal advice. I can't establish or accept an attorney-client relationship with you. All posts are available for public viewing.

Kind regards,

Gerald

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