• Theories of Liability Against Principals of Debtor
  • September 15, 2014 | Author: Joseph S. U. Bodoff
  • Law Firm: Rubin and Rudman LLP - Boston Office
  • All too often, businesses cease operating, leaving creditors with little or no ability to collect on their debts. Fortunate creditors may have collateral or personal guaranties signed by a person or entity that is not judgment-proof. For the vast majority of creditors, however, their recourse is limited to collecting from the failed business. Especially where the amount owed is significant, creditors will want to consider ways that they might collect from—or credibly threaten collection from—the debtor’s principals.