S-Corp 50k credit card debt wants to file for bankruptcy. Will we be responsible to pay the credit card debt and does this affect our personal credit

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

S-Corp 50k credit card debt wants to file for bankruptcy. Will we be responsible to pay the credit card debt and does this affect our personal credit

My business partner and I have an S-Corp (real estate appraisal company) and business is basically no longer and we have $50,000 in business credit card debt. We have been holdiing on for about 2 years hoping things will get better but its only getting worse. We have no assets and no future clients. If we file for bankruptcy are we responsible for this credit card debt and will this affect are personal credit? Also if we start a new company in the future will this come back to bite us?

Asked on June 23, 2009 under Bankruptcy Law, California

Answers:

J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

I am a lawyer in CT and practice in this area. The issue is whether or not you personally guaranteed the credit cards.  If you did not personally guarantee the cards, then the creditors cannot come after you as corporations have separate legal capacity.  if you did sign, then the creditors can sue you and your credit will be affected.  If you were not personally on the cards, then you can start up a new corp without worrying about this.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption