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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
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Experience:  JD, MBA
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I am going to have to file bankruptcy in my s corp in NC. I

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I am going to have to file bankruptcy in my s corp in NC. I am the largest unsecured creditor. There is no secured debt, just trade debt. What implications can this have on me personally? Can the creditors go after me personally
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 8 years ago.

Hello and thank you for allowing me to address your legal question.

Unless you personally guaranteed the debt, then generally speaking you can’t be held personally liable for it. Therefore, your credit rating, etc., will not be affected by the bankruptcy of the corporation, and the creditors cannot go after you for payment.

There are exceptions to that general rule that allow creditors to "pierce the corporate veil," but it usually requires the creditor to prove fraud of some kind, or that the corporation did not comply with applicable regulations, etc.

Have I satisfactorily answered your question? If not, then please feel free to ask for clarification.

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DISCLAIMER: Please understand that the complexities of most legal problems cannot be adequately addressed in this setting, and that I am only licensed to practice law in the state of Maryland. Accordingly, you acknowledge (1) that we have not formed an attorney-client relationship, and (2) that my post is general information only and is not specific legal advice.

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