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If small business is incorporated does bankruptcy on the corporation hurt personal property?
Wiki User
∙ 14y ago
You mean to the property of the owner personally, rather than by the Corp. It doesn't except to the degree it may have been pledged - as in small personal business, many times lenders/creditors require the owner to sign personally too.
Wiki User
∙ 14y ago
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What is personal Bankruptcy?
It is when an indivdual (or married couple) file for bankruptcy rather than a business or corporation.
If you file bankruptcy for your business will they take your personal tax refund?
If your business is a separate corporation or entity, no.
How does a personal bankruptcy of one of the officers affect a corporation?
Not at all.
Does business bankruptcy affect personal credit?
If your business is tied to your personal credit, then yes, you run the risk of being personally affected by the business's bankruptcy.
Is it best to have a business as an un-incorporated or incorporated?
Incorporated. An un-incorporated business leaves the owner(s) individually liable (including their personal assets) to financial exposure and liability. An incorporated enterprise limits the financial exposure to only those assets allocated to the business, and protects the owners personal assets.
Does personal bankruptcy effect business credit?
In a Proprietorship, the personal bankruptcy of the proprietor may cause shut down of business. Whereas in Partnership and Joint Stock Companies, bankruptcy of Partners, Directors effects business credit immensely as bankers become shy in extending further credits to the company.
If i file for bankruptcy what debts am i liable for in the company name?
If you file BK and the business is just that - a sole proprietorship...you doing business as "a business name"...they are all your personal debts. If it is incorporated, a Corporation, or several other forms of legal entity - you may not have any obligation for any of the debts in that entities name, unless of course, you were required to sign for them personally too...which in small or newer businesses of any type is common.
Can you own your own business while going through bankruptcy?
Depends on the type of bankruptcy you are filing. Generally a personal bankruptcy does not effect your business, and vise versa. However, if your business is filing bankruptcy, a Chapter 11 reorganization will allow you to stay in business.
What kind of services do business bankruptcy lawyers offer?
A business bankruptcy lawyer can guide your business through the bankruptcy process, and ensure that you can maintain as much of your assets as possible while undergoing the bankruptcy process.
Does a personal chapter 7 bankruptcy cover a corporation personal guarantee?
Yes, if you include the guarantee you made to the creditor in the bk.
If your company declares bankruptcy does this discharge your guaranty?
If the company is a corporation and you personally guaranteed the debt, the corporation's discharge of its debts does not discharge your obligation. If the company is you as a "DBA" then more than likely the discharge of the DBA (doing business as) discharges your personal guarantee.
What if you file chapter 7 will you still owe creditors if you have a corporation?
To the extent of your personal guarantee for the corporate debt, or if both you and the corporation borrowed the money, you will not owe anything if the debts are discharged in your personal chapter 7. If the corporation has any assets, it will be subject to lawsuits and attachments by the creditors. You should discuss the situation with an experienced bankruptcy attorney, as it may be better to wind up the corporation before filing a personal bankruptcy.
