Question by Project EX: If I owe debt under my C Corporation can they come after my personal assets?
Our company is a startup, about 3 months into operation, but are already swimming in about ,000 of debit ( ,000 loan, and ,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 00 – 1500 a month, now its less than 0. 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!
Best answer:
Answer by lb_centaur
If you incorporated (you used the word corporation), that releases you from personal liability against debts of the corporation. You don’t need to explain “this” to them. Did you take out this debt using your SSN or your company TIN?
It sounds like you are not truly incorporated. Schedule C is used by individuals to file taxes for a personal business. Corporations will file their own income taxes wholly separate from individuals. It sounds as though you never incorporated (this typically costs 00 or more and often requires legal assistance). I have never heard of such a beast as a C-Corporation.
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"The Holidays are Here (and We’re Still at War)"
Pilgrims in the parking lot
Arteries clogged with blood clots
Pushing through the aisles of department stores
Neon crosses and Christmas lights
Credit card debts and brand new bikes
The holidays are here and we’re still at war
The rabbi reads from the testament
The banker gazes at the year’s investments
Salvation santa’s solicit for the poor
Deception of democracy
The philanderings of faux foreign policy
The holidays are here and we’re still at war
Smoggy skies and fixed elections
Injustice strikes from all directions
People with their backs against the floor
Looking for someone to set us free
A king with fists like Mohammad Ali
The holidays are here and we’re still at war
A mother knows what is best for you
Even though it’s hard to listen
Your father knows he can count on you
Though you couldn’t count on him
Christopher Columbus knew
Vasco De Gama and Magellan too
The profits of oppression grow like never before
All hail to the captalist thief
And mourn your lost ones and covet our grief
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Hurricane waters ravage southern towns
And black and brown people are left to drown
While the White House and the emergency management agency ignores
Victims seek shelter in the Astrodome
And the National Guard says "Don’t go home"
The holidays are here and we’re still at war
Police officers hassle the homeless
Domestic disputes, alcohol and violence
The jailhouse opens wide its door
A corporation cuts a million employees
And the factory is moving overseas
The holidays are here and we’re still at war
A mother knows what is best for you
Even though it’s hard to listen
Your father knows he can count on you
Though you couldn’t count on him
Jesus sheds another tear
Into a sea of two thousand years
Into the eve of a new year once more
Tears of joy, resolutions of sorrow
Toast to health and wealth tomorrow
The holidays are here and we’re still at war
Religious wars and domination
World trade and globalization
The prices of petroleum soar
Lonesome churches are packed with sinners
Non-believers and new beginners
The holidays are here and we’re still at war
Say a prayer for the less fortunate
Prisoners and soldiers you never have met
Understand what it is they’re fighting for
Say a prayer for your enemies
Say a prayer for the victims and their families
The holidays are here and we’re still at war
Yes, the holidays are here and we’re still at war
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