Credit Card Merchant Collect on Personal Guarantee of Sold Company
Am I liable for debt of a company I sold 5 year ago?
I sold a remaining ownership to a partner several years ago. There was a bill of sale of my ownership, and the purchase agreement had stated that the buyer’s responsible all liability after purchase date.
During the partnership, I signed a merchant agreement with credit card processor. The standard merchant agreement has personal guarentee of the signatory.
Currently, the company’s defunct. Since the credit card processor can’t locate the current owner, they are seeking me to cover fees and charge back of the defunct company. Am I liable for the debt?