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What about the alleged damages raised in the breach of contract dispute? Texas case law identifies two lines of legal reasoning in determining when a debt is “created or “incurred”.  The first line of case law stands for the proposition that a debt is neither created nor incurred until it is reduced to a liquidated sum of money. In Cain v. State, 882 S.W.2d 515 (Tex. App. – Austin 1994, no writ), Lee Cain appealed a district court decision holding him personally liable for the debts of the Timber Creek Oil Company of which he was an officer and director. The Texas Railroad Commission had originally sued Timber Creek Oil Company and Mr. Cain, individually, to recover nearly $50,000 that it had spent plugging fifty of the company’s oil wells.  The commission authorized the expenditure of state funds on December 19, 1988, and paid out the funds between July 1989 and December 1989.  Timber Creek failed to file its 1989 Texas franchise tax report, which was due on March

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