Quote:
Originally Posted by kane
If your business is incorporated and it fails you can declare bankruptcy. If the business goes out of business the creditors will take any and all assets the business has, but as long as you set it up correctly they will not be able to touch your personal assets.
Now I may have overstated things in one area. If you personally do something that is considered reckless and causes the downfall of the company creditors or other investors/shareholders could sue you personally, but they would have to prove that whatever you did caused the destruction of the company.
|
Business wise, almost all lines of credits at banks today have a personal guarantee on them now. Bankrupting the company doesn't clear that debt, it transfers it to you, personally. If you are married, they can take the money from either of you as well, directly from your check, before you get paid, legally, even if the other person never owned the company. The way around this is collateral, which again, they take if you default.
Adding to that: Point being, they wont let you bankrupt shit anymore unless you are truly bankrupt, even personally. If you can pay it personally, a judge just transfers the debt to you, even b2b owed money.