Potential Defenses To Lawsuits

No Liability

Liability Issues

Sometimes creditors sue parties who are not legally liable for the debt. For example, the owner of an incorporated business may not be personally liable for a bill incurred by the business unless the owner signed a personal guarantee for the bill. Similarly, one spouse may not be liable for credit card charges and other debts incurred by the other spouse.

Also, if a credit card is issued to Mary, and she orders a second card for her son Joe, who is then listed jointly on all the billing statements, Joe may not be liable for the credit card charges that Mary incurred, unless he signed a personal guarantee for those debts.