Fuquay Varina, NC asked in Bankruptcy and Business Law for North Carolina

Q: If I own a company (S corp) and we owe $18000 in loans/card debt what happens to the balance when we close the company?

I own an S Corp, we close the office last fall due to lack or work. We have not been able to get it going again and we owe 8k in cards and around 15k on a loan. If we file chapter 7 does the debt the company owed then comes to me, or is it gone with the failed company? As of right now I dont see the cards on my cerdit report I think they are just on the company EIN?

Related Topics:
1 Lawyer Answer
Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: Unless you signed as a personal obligation on the nite, the debt stays with the s Corp.

Bruce Alexander Minnick agrees with this answer

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.