Credit Debt Management

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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