What can the Creditors do to S/H or Corp about paying back $100,000?
A: Creditors could sue under Uniform Fraudulent Transfer Act and force the shareholders to repay the corporation, and thereby satisfy creditor judgments to the extent of the money recovered.
Jail time a possibility?
A: Yes, if a criminal complaint were acted upon by the district attorney. However, most of the time, with this sort of white collar crime, the DA doesn't act, in the hopes that the creditors will spend their own money to try to collect. Then, if the creditors succeed, the DA can use the creditor's judgment as evidence of criminal culpability. Still may decide to not prosecute.
Already Inc & Use New Corp.
You could offer to pay the creditors everything that's left in the C Corp, in exchange for a release from further liability, and then just close the doors on that business.
Re the $100K, you may want to seriously consider putting it back -- but, it's your call.
Hope this helps.
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