QUESTION
When filing for bankruptcy of an "S" Corporation are the owners liable for paying off the personal credit cards that the company used?
Asked on Jul 16th, 2012 on Bankruptcy - Kansas
More details to this question:
We each have several credit cards we used for our business. We do not want to file personal bankruptcy. The business is not doing well and we want to know what the impact is going to be on each of the shareholders.
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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Whether the owners are liable for credit cards, or any other debts of the corporation for that matter, has nothing to do with whether or not the corporation files bankruptcy. They either are, or are not liable based on state and other applicable contract and other law. For example, if the owners signed personal guarantees for any of the corporate debts, then obviously they would be responsible. Certain taxes, such as the trust fund portion of employee payroll taxes, pass through to the owners of a corporation as well.
Mark J. Markus, Attorney at LawCertified Bankruptcy Law Specialist--State Bar of California Board of Legal SpecializationHandling exclusively bankruptcy law cases in California since 1991.http://www.bklaw.com/bankruptcy blog: http://www.bklaw.com/bankruptcy-blog/Follow Me on Twitter: @bklawr
Answered on Jul 16th, 2012 at 9:09 PM