In 2005 my wife and I formed a S corp (in Florida) and bought an existing flower shop. The shop had an existing relationship with FTD (Illinois based company that acts as a middle-man for florists worldwide). Our shop was forced to close a few months ago due to the economy. The few assetts that the corp owned were liquidated and proceeds went to various creditors and vendors. There was not enough to pay off all of the shop's debt. FTD has been in contact with us and is attempting to collect $10,000.00 from us. We do not have the means to repay this debt. I am wondering if the corporate veil can be pierced in this scenario. When we bought the shop, FTD signed a contract with the corporation but my wife and I had to sign a personal guarantee form. The following is the verbatim text of that guarantee. Any advice will be greatly appreciated.
Thanks
The undersigned, individually, and if the undersigned are more than one, jointly and severally, unconditionally guarantee to FTD the prompt payment, when due, of principal and interest owing on the Florist's account with FTD and all other obligations or indebtedness of the Florist to FTD now existing or hereafter arising in favor of FTD against the Florist or assigned by FTD Members to FTD. The undersigned hereby waives notice of acceptance hereof presentment, demand, protest, or notice of any kind. This guarantee shall cover the renewal of any obligations or indebtedness guaranteed by this instrument or extension of time payment thereof, and shall not be affected by any surrender or release by FTD or any other security held by it for any obligation or indebtedness hereby guaranteed. By signing below the undersigned authorizes FTD to obtain credit bureau reports from time to time of any and all Guarantors for credit and collection purposes in connection with establishing, maintaining and enforcing FTD's credit relationship with Florist
Thanks
The undersigned, individually, and if the undersigned are more than one, jointly and severally, unconditionally guarantee to FTD the prompt payment, when due, of principal and interest owing on the Florist's account with FTD and all other obligations or indebtedness of the Florist to FTD now existing or hereafter arising in favor of FTD against the Florist or assigned by FTD Members to FTD. The undersigned hereby waives notice of acceptance hereof presentment, demand, protest, or notice of any kind. This guarantee shall cover the renewal of any obligations or indebtedness guaranteed by this instrument or extension of time payment thereof, and shall not be affected by any surrender or release by FTD or any other security held by it for any obligation or indebtedness hereby guaranteed. By signing below the undersigned authorizes FTD to obtain credit bureau reports from time to time of any and all Guarantors for credit and collection purposes in connection with establishing, maintaining and enforcing FTD's credit relationship with Florist
