Your personal assets cannot be touched for the judgment that is against your company. The judgment against your company can only be used for assets the company owns.
If you file a business Chapter 11 Bankruptcy, you would be able to work with the creditor so that the value of your assets could be paid - usually over time - instead of the judgment amount.
I think this is what you wanted to know. If not, please let me know.Thank you!
By working with creditors so that the value of the company assets are paid over time instead of the judgement amount, does that mean that the current asset value ( say $10,000 at time of filing) would be all that creditors would be entitled to or would they also be entitled to future earning of the company so that the bankruptcy would only serve to buy time to pay the full amount ? If that is the case, assuming the same 50K judgement and 10K assets, would chapter 7 seem more appropriate. Assuming everything is liquidated at auction, could personal assets be used to purchase back items that would be essential in starting fresh ??
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