Corporation goes bankrupt... - GoFuckYourself.com

Shaze · 06-25-2006, 11:22 PM

if your a owner in a corporation that files for bankruptcy does your credit get screwed also????

junction · 06-25-2006, 11:25 PM

Your personal credit stays out of the equation, unless you were required to make a personal guarantee on anything.

BlingDaddy · 06-25-2006, 11:26 PM

Quote:

Originally Posted by Shaze

if your a owner in a corporation that files for bankruptcy does your credit get screwed also????

Depends... LLC, INC, LLLC or what... also depends on other factors...

DateDoc · 06-25-2006, 11:26 PM

Only on things you personally guaranteed for the corporation. Like if you got a visa card for the company and you gave your info as personal guarantor. If the company goes belly up you are liable for that debt.

The other way you could be liable for corporate debts is if you acted negligently and your negligence caused the company to fail.

BlingDaddy · 06-25-2006, 11:27 PM

Quote:

Originally Posted by junction

Your personal credit stays out of the equation, unless you were required to make a personal guarantee on anything.

Not true... "officers of the company" can be held liable in certain states.

BlingDaddy · 06-25-2006, 11:27 PM

Quote:

Originally Posted by BusterPorn

Only on things you personally guaranteed for the corporation. Like if you got a visa card for the company and you gave your info as personal guarantor. If the company goes belly up you are liable for that debt.

The other way you could be liable for corporate debts is if you acted neglegently and your negligence caused the company to fail.

Exactly .. see above.

DateDoc · 06-25-2006, 11:28 PM

Quote:

Originally Posted by BlingDaddy

Not true... "officers of the company" can be held liable in certain states.

for specific conditions such as negligence

tony286 · 06-25-2006, 11:30 PM

for the part most your credit isnt touched unless they try to pierce the corporate.

Shaze · 06-25-2006, 11:30 PM

Quote:

Originally Posted by BlingDaddy

Depends... LLC, INC, LLLC or what... also depends on other factors...

Closed Corporation.

it's a family run business and my parents are buying out the third party and giving his portion of shares to me....so they are asking me to sign the corporate papers...

BlingDaddy · 06-25-2006, 11:31 PM

Quote:

Originally Posted by BusterPorn

for specific conditions such as negligence

Not always true Buster... some states require owners as operators to be "culpable". You can be non-negligent and still responsible. Depends on the state.

BlingDaddy · 06-25-2006, 11:32 PM

Quote:

Originally Posted by tony404

for the part most your credit isnt touched unless they try to pierce the corporate.

Tony, you are also right. "Piercing" the corporate "veil" is quite difficult, and most courts frown upon it.

DateDoc · 06-25-2006, 11:34 PM

Quote:

Originally Posted by BlingDaddy

Not always true Buster... some states require owners as operators to be "culpable". You can be non-negligent and still responsible. Depends on the state.

I'm sure their are other conditions such as defective products, etc. but if you did everything by the book and ran the corporation properly I can't see you be personally liable for a corporation's debt. If you were what would be the point of forming a corp in that state?

Shaze · 06-25-2006, 11:35 PM

Quote:

Originally Posted by BlingDaddy

Tony, you are also right. "Piercing" the corporate "veil" is quite difficult, and most courts frown upon it.

so i'm pretty much safe from any liabilities of the corporation, and the corporation is safe from any of my personal liabilities? what i'm trying to make sure of is that if someone goes after me personally they won't be able to touch my family's corporation, and if something happens to the corporation they won't be able to go after me....

another thing is my LLC is an adult business and if i ever run into any problems i don't want people or government to be able to go after my families corporation....keep in mind they have no idea i make some of my money in adult.

BlingDaddy · 06-25-2006, 11:35 PM

Quote:

Originally Posted by Shaze

Closed Corporation.

it's a family run business and my parents are buying out the third party and giving his portion of shares to me....so they are asking me to sign the corporate papers...

I'm no legal expert, and I would advise you find one. There is no such thing as a "closed corporation".

You parents will not be able to assign the third party shares unless they are majority owners. Additionally the "third party" where are they?

Shaze · 06-25-2006, 11:36 PM

Quote:

Originally Posted by BlingDaddy

I'm no legal expert, and I would advise you find one. There is no such thing as a "closed corporation".

You parents will not be able to assign the third party shares unless they are majority owners. Additionally the "third party" where are they?

two-thirds of the business is owned by our family, the third partner has also already agreed to sell his shares so that my family will own 100% of the business and he will just work for us....

Shaze · 06-25-2006, 11:41 PM

Quote:

Originally Posted by BlingDaddy

I'm no legal expert, and I would advise you find one. There is no such thing as a "closed corporation".

You parents will not be able to assign the third party shares unless they are majority owners. Additionally the "third party" where are they?

i understand your not a legal expert, but i'm just poking around right now before making any type of decision...i've studied business law in college so sort of know how things work, thing is my family says everything should be "okay", i guess they consulted their lawyers already.

and they said they need to to give them an answer within 3 days because they need to "renew" the corporation.

another thing is i know that the shareholder's credit history affects the credit of the corporation and the ability for the corporation to get loans...so i was wondering if it was vice versa...

BlingDaddy · 06-25-2006, 11:41 PM

Quote:

Originally Posted by Shaze

so i'm pretty much safe from any liabilities of the corporation, and the corporation is safe from any of my personal liabilities? what i'm trying to make sure of is that if someone goes after me personally they won't be able to touch my family's corporation, and if something happens to the corporation they won't be able to go after me....

another thing is my LLC is an adult business and if i ever run into any problems i don't want people or government to be able to go after my families corporation....keep in mind they have no idea i make some of my money in adult.

You may want to make them advised of the idea you make "some money in adult".

As I said before, don't ever do anything without COMPETENT COUNSEL (which you won't find here). You can buy in to the family buisness and still be safe from contamination if you are holding other companies. Doesn't matter if they are LLC's or INC's or LLL'cs.

This is the time where spending some $$ on a kick ass laywer will reward yo 10 times in the future... IMHO.

BlingDaddy · 06-25-2006, 11:44 PM

Quote:

Originally Posted by Shaze

two-thirds of the business is owned by our family, the third partner has also already agreed to sell his shares so that my family will own 100% of the business and he will just work for us....

Yeah... but 2/3 is how much? How much is the 1/3 the non owner is giving up? It's quite complicated.

He's willing to sell his 1/3 and "work" for YOU and US? Right... get counsel.... please.

Dagwolf · 06-25-2006, 11:47 PM

Quote:

Originally Posted by Shaze

if your a owner in a corporation that files for bankruptcy does your credit get screwed also????

So who's thinking of filing for bankruptcy, you or the corporation?

Shaze · 06-25-2006, 11:49 PM

Quote:

Originally Posted by BlingDaddy

Yeah... but 2/3 is how much? How much is the 1/3 the non owner is giving up? It's quite complicated.

He's willing to sell his 1/3 and "work" for YOU and US? Right... get counsel.... please.

he's on the payroll already..so he'll just continue to be on the payroll, and not own part of the business. From what my family said he is in need of money right now so has offered to sell his ownership....i actually have nothing to do with the day to day running of the corporation..i actually have nothing to do with the corporation at all

!!!

I'm basically a shareholder on paper and that's it. Even if I do get some of the shares I will have nothing to do with the business.

well...i guess i gotta call my lawyer tommorrow....here goes some of my cash to legal fees....

Shaze · 06-25-2006, 11:53 PM

Quote:

Originally Posted by Dagwolf

So who's thinking of filing for bankruptcy, you or the corporation?

LOL...no one actually...we are both pretty well off..but i'm just thinking worse case scenario

DateDoc · 06-26-2006, 12:01 AM

Quote:

Originally Posted by Shaze

so i'm pretty much safe from any liabilities of the corporation, and the corporation is safe from any of my personal liabilities? what i'm trying to make sure of is that if someone goes after me personally they won't be able to touch my family's corporation, and if something happens to the corporation they won't be able to go after me....

Your ownership in the corporation is an asset to you. If you are sued personally you could be forced to sell this asset to pay off any judgements against you.

spunkmaster · 06-26-2006, 12:04 AM

Ask a real fucking lawyer !

Ace_luffy · 06-26-2006, 12:49 AM

what's primary reason why some corp as been bankrupts ???

Webby · 06-26-2006, 12:57 AM

Quote:

Originally Posted by BusterPorn

Your ownership in the corporation is an asset to you. If you are sued personally you could be forced to sell this asset to pay off any judgements against you.

Correct... get professional advice Shaze.

There are other issues, but assume you are not going to be an officer of the corp? If you are, definately seek more legal advice

$5 submissions · 06-26-2006, 01:04 AM

Quote:

Originally Posted by Shaze

if your a owner in a corporation that files for bankruptcy does your credit get screwed also????

NO. Unless the creditors sue you and "pierce the corporate veil." ONE OF THE MAIN REASONS why the legal concept of corporations was created was to protect entrepreneurs' personal assets from loss arising from their business ventures.

How to pierce the corporate veil?

1) The corporation is weakly capitalized (ie., your corp doesn't have enough cash in it's own account to cover its operating expenses)

2) The corporation is an ALTER EGO of the shareholder -- ie., personal funds in corporate account, corporate assets used for personal reasons, etc

3) Disregarding corporate form -- ie., you don't hold annual shareholder meetings, no minutes, no separate corporate forms, etc etc.

What happens when the corporate veil is pierced successfully? Your personal assets are used to pay creditors for losses arising from corporate activities and your credit gets FUCKED accordingly

06-25-2006, 11:22 PM	#1
Shaze Confirmed User Join Date: Oct 2003 Location: Cyberspace Posts: 2,662	Corporation goes bankrupt... if your a owner in a corporation that files for bankruptcy does your credit get screwed also???? __________________ Adult Search Engine Japanese Porn Thai Porn

06-25-2006, 11:26 PM	#4
DateDoc Outside looking in. Industry Role: Join Date: Feb 2005 Location: To Hell You Ride Posts: 14,243	Only on things you personally guaranteed for the corporation. Like if you got a visa card for the company and you gave your info as personal guarantor. If the company goes belly up you are liable for that debt. The other way you could be liable for corporate debts is if you acted negligently and your negligence caused the company to fail. __________________

06-26-2006, 12:04 AM	#23
spunkmaster Confirmed User Join Date: Jan 2004 Posts: 2,052	Ask a real fucking lawyer ! __________________

06-26-2006, 12:49 AM	#24
Ace_luffy www.creationcrew.com Industry Role: Join Date: Feb 2005 Location: CREATIONCREW.COM CREATIONCREW.COM CREATIONCREW.COM CREATIONCREW.COM CREATIONCREW.COM CREATIONCREW.COM Posts: 12,110	what's primary reason why some corp as been bankrupts ??? __________________ ++ Adult and Mainstream Websites Designs \| 10 banners for only $50 \| html5 Banners ++ email : [email protected] Telegram : https://t.me/creationcrew \| HTML5/Responsive Site - Div/CSS - ElevatedX - NATs - Wordpress

06-25-2006, 11:25 PM	#2
junction Confirmed User Industry Role: Join Date: Dec 2002 Location: Midwest Posts: 2,411	Your personal credit stays out of the equation, unless you were required to make a personal guarantee on anything.

06-25-2006, 11:30 PM	#8
tony286 lurker Industry Role: Join Date: Aug 2002 Location: atlanta Posts: 57,021	for the part most your credit isnt touched unless they try to pierce the corporate.