Also known as: debt · Roman debt
Written by attorneys · grounded in primary & secondary sources — see below
A debt consisting of money owed to another party. The concept requires an underlying obligation that is valid and enforceable under the applicable legal framework.
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Albert Allen borrowed funds from Anchor Bank to renovate his commercial building and executed a recorded mortgage on the property. When Albert defaulted on payments, the bank initiated foreclosure proceedings to recover the outstanding amount. The mortgage operated as security for the debt Albert owed.
Artemis Logistics formed an LLC to operate its delivery fleet. A supplier sued one of the members personally after the company failed to pay for fuel deliveries. The court dismissed the claim against the member because the debt belonged solely to the LLC.
Andrew Avery and Anita Ali operated a consulting firm as a limited liability partnership. A client obtained a judgment against the firm for unpaid services. The court held that the partners were not personally responsible for the partnership debt incurred while the LLP designation was in effect.
Adam Anderson withdrew as a general partner from a limited partnership that owed substantial vendor payments. The remaining partners argued his exit ended his responsibility. The court ruled that dissociation alone did not discharge the debt he had incurred while serving as general partner.
Abigail Alvarez executed a mortgage on her warehouse to secure repayment of a business loan from Avalon Pharmaceuticals. When the underlying loan agreement was later declared void, the mortgagee could not enforce the security interest. The absence of an enforceable obligation extinguished the mortgage.
Alan Ackerman invested as a limited partner in a real estate venture that later defaulted on construction financing. Creditors attempted to collect directly from Alan. The court held that his status as a limited partner shielded him from personal liability for the partnership debt.
It refers to money owed to another party or borrowed funds that create an enforceable obligation.
A mortgage is enforceable only when it secures a valid debt. If the obligation is void or discharged, the mortgage itself may be extinguished.
The entity form protects members and partners from personal liability for company obligations incurred while the shield is in place, but it does not eliminate the underlying debt owed by the entity.
…with other property of the same description throughout the State. Opinion of Chief Justice Marshall This was an action of debt brought by John James, who sued as well for himself as for the State of Maryland, in the County Court of Baltimore County against James William McCulloch to recover certain penalties under…