I started a company in Oct. 2005, and invested $80+ of my own money plus over 2 years of work. In Jan. 08 I had an investor buy in for $25k for 25% ownership plus he was required to lend the company up to $175k as needed. He cut us off after $63k in loans and the company went under. He's coming after me now, but I have no personal guarantee. I did misappropriate/commingle some funds for personal use when I got desperate but only for food, car payments, and car insurance so I can keep traveling for work. I also made some cash withdrawals from the biz bank account to pay for some business bills, some can be documented, some cannot. I wouldn't mind paying back anything that I didn't document, I think there is a total of about $4k in "gray area" transactions. I just want this guy out of my life without anymore trouble. I know I was stupid, but can he sue me or possibly put me in jail because of this? If so, can I avoid all problems if I promise to pay him back for any transactions that are iffy? Would he be responsible for anything because he didn't meet his investment we agreed on? I'm in the process of filing personal bankruptcy, ch. 7, if that makes a difference. Please help! Thank you!
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