officer liability Archives - FLORIDA COLLECTION ATTORNEY

Our collection attorneys find time and time again small businesses ignore corporate formalities. At our Florida Collection Law Firm, we investigate to see if corporate formalities have in fact been followed. If not our collection lawyers will seek to pin personal liability for corporate debt on the principals of these entities. The principals of these single member limited liability companies or closely held companies simply take these forms with the illusion, it will shield them from personal liability for the debt these entities incur. This is a mistake.
Our collection lawyers look for commingling of corporate funds with the personal funds of the principals and/ or the use of corporate funds for expenses that our clearly not business related. Good examples are expenses for purchase of movie tickets, repeated charges to restaurants and or charges incurred at Universal Studios or Disney World. One of the biggest mistakes our collection attorneys find is the principals of the debtor entities do not file their annual reports with the department of corporations. This causes the entity to become administratively dissolved.

Collection Attorney and Collection Law Firm

Please feel free to contact our collection attorney at our debt collection law firm and speak to our collection lawyers about the specifics facts surrounding your debt collection case. We will discuss the possibility of pursuing the principals of closely held entities for the debt owed to your company. You may mail or email your supporting documents to our collection firm. Our collection attorney will review your account and then contact you to devise a strategy for your debt collection matter.

Stephen B. Gebeloff, P.A.
5255 N. Federal Hwy., 3rd Floor
Boca Raton, FL 33487
(561)953-4600
fax(561)953-4610
[email protected]

Yes, in instances of fraud or if it is proven that the officers made negligent misrepresentations of fact, the officers of a corporation can be held personally liable for the debt of a corporation. A good example would be when the debtor corporation places an order for $1,000.00 of goods and or services but, in reality the corporation, at the time, only had the financial ability to pay for $150.00 . When subsequently trying to collect money due, a creditor should revisit the representations made by the debtor’s agents or employees pertaining to the credit transaction.

Stephen Gebeloff Florida Collection Lawyer

“Aggressively Pursuing Our Clients’ Interests Tempered by Seasoned Professionalism”

If a creditor is anyway mislead as to the debtor’s creditworthiness, or it can be shown that the officers of the debtor corporation knew or should have known the debtor could not afford the goods or services (equitable insolvency), a creditor may be able to impose personal liability on the officers.Please feel free to contact our collection law firm and speak to our collection attorney about the specific facts surrounding your debt collection case. You can email your supporting documents to our collection firm. Our Florida collection attorney will review your account and then contact you to devise a collection strategy for your company.

Stephen B. Gebeloff, P.A.
5255 N. Federal Hwy., 3rd Floor
Boca Raton, FL 33487
(561)953-4600
fax(561)953-4610
[email protected]

Tag Archives: officer liability

Can Principals of a Closely Held Entity Be Personally Liable for the Debt of the Entity

Can Officers of a Corporation Be Personally Liable for Goods Shipped or Sevices Provided