If I owe debt under my C Corporation can they come after my personal assets?
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Our company is a startup, about 3 months into operation, but are already swimming in about $22,000 of debit ( $10,000 loan, and $12,000 credit card ), the problem being we made a few costly mistakes in the beginning, and thus here we are today.
My main full time job, is cutting payroll by almost 50%, so instead of making $1400 - 1500 a month, now its less than $900. I cannot pay my current debts off. I'm already enrolled into a personal debt collection management program.
*** Here is my question ***
1. As a C-Corporation am I personally protected from the business debt? Meaning if say the business owes X amount of dollars, they cannot harass me or try to take my car or house or w/e to pay off the funds.
2. How do I go about explaining to them? Should I file for chapter 11 bankruptcy.. but at the same time I'd like to save the company somehow, I just can't pay off this debt.
Any help would be very much appreciated.
Thank you!
If I owe debt under my C Corporation can they come after my personal assets?Im sure your corporate paperwork says that you are only responsible for the money you placed into stock. Say 500 dollars.
They would have to break your corporate veil. Meaning the creditor can show that you never paid the 500 for your stock. Or that you didnt have your required meetings. That you didnt keep minutes. Or worse you used the business accounts for any personal items.
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