Results 1 to 3 of 3
  1. #1
    Join Date
    Aug 2007
    Posts
    2

    Default C-Corp Bankruptcy - Are Owners Liable

    Incorporated in Indiana, privately held company, owned by myself (majority) and my adult children. If I file bankruptcy, can the creditors go after my or my kids personal assets. No one has signed to personally guarantee any loans for this company. Thanks.

  2. #2
    Join Date
    Sep 2010
    Posts
    355

    Default Re: C-Corp Bankruptcy - Are Owners Liable

    Your question is a bit confusing but I will take a stab at it.

    If you file a personal bk you will be required to list all of your personal assets. This INCLUDES your stock in the corporation. You are allowed to exempt certain property meaning, that property is not subject to the claims of your creditors. Exemptions vary from State to State and may(or may not) include the stock ownership. The assets that are not exempt may be taken, in a Chapter 7, by your Trustee and liquidated for the benefit of your creditors. If you want to maintain control over the non exempt assets then you need to look at either a Chapter 11 or Chapter 13 reorganization.

    If you (or your children) did not personally guarantee the corporate debt then you (or your children) are not responsible for it and cannot be sued - or if sued, have an absolute defense. The corporate debt would not be listed in your personal bk unless you personally guaranteed it.

    Not sure if I covered your questions but, if not, feel free to post again.

    Best regards.

    Des.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    74,898

    Default Re: C-Corp Bankruptcy - Are Owners Liable

    (The question appears to be about personal bankruptcy, not corporate bankruptcy.)

    If the liabilities belong to the corporation, there are no personal guarantees of the corporate debt, and the corporation's assets have been managed appropriately (not, for example, commingled with corporate assets, or diverted for personal use) you should be okay.

    Many people simply wind down a corporation without formally going bankrupt.

    1. Sponsored Links
       

Similar Threads

  1. Business Issues: How to Terminate Corp. Officer, Minority Shareholder from Corp
    By Eric E in forum Business Law
    Replies: 2
    Last Post: 11-26-2010, 10:15 PM
  2. Business Finance: Personal Bankruptcy and Business Corp Dissolution
    By bizopen in forum Business Law
    Replies: 2
    Last Post: 09-26-2010, 12:31 PM
  3. Bankruptcy Issues: Liable for Condo Fees After Bankruptcy
    By cwjr1835 in forum Bankruptcy Law
    Replies: 2
    Last Post: 08-28-2009, 07:13 AM
  4. Premises Liability: Are Premises Owners Liable For Damage Caused By A Delivery Truck
    By Modena2004 in forum Accidents and Injuries
    Replies: 5
    Last Post: 11-17-2007, 05:19 PM
  5. H Visas: Corp to Corp
    By business7 in forum Business and Employment-Based Immigration
    Replies: 1
    Last Post: 09-12-2007, 05:21 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
 
Forum Sponsor
Bankruptcy Forms
State specific bankruptcy forms at affordable prices. Download and use.


Untitled Document