i hav a question bout filing bankruptcy on my corporation. we hav large amounts in uppaid invoices. buy hand full of clients. but we also have current jobs unfinished. i think i can finish most of them. but will take much longer than expected. subcntractors are a big issue and poor labor quality. and my fault for growing to fast. so my question is what personal and legal liabilty will i have as president? i asume alot
*This chat is not intended as legal advice. It is general information that may or may not apply to your situation and should not be relied upon.*Welcome,It is my goal to deliver information in five-star manner. I am a licensed attorney but I am not your attorney. The law does not allow me to provide legal advice or form an attorney-client relationship on this public forum. If at any time the information which I provide is not clear to you or does not fully answer your question, please ask me for clarification by using the reply button.From your description, it sounds like you would only be personally liable on the corporate debt that you have guaranteed or cosigned. A corporation is considered to be a separate legal entity from its officers and shareholders. Typically a shareholder/officer would not be liable on any corporate debt unless the shareholder/officer entered into an agreement to be liable for that debt.Have I answered your question? Please rate my service to complete our conversation or click "REPLY TO EXPERT " to continue our conversation . Please rate my help in providing you with information. Please note that this rating is specific to my service and not the site or the effects of the law on your situation. Great service allows me to keep my job and is necessary in order for me to be permitted to assist other customers If I can assist you in the future, you may contact me by starting a new page and begin your new question with "For FiveStarLaw"
id like to know more about how to deal with the 4 jobs we have not finished? clients have paid deposites. and some have paid start up money. i dont mind paying some of our honest clients a partial refund
I am not clear why you cannot continue to work and complete the jobs without filing bankruptcy
we are almost out of money as jobs have had unexpected costs. and i have not coverd on contract. id like to file bankruptcy and agree to finish our couple of clients that are near completion.
You would need to file a Chapter 11 bankruptcy in order to continue to work on the contracts near completion. A Chapter 11 is a reorganization
ok so if i file chapter 7 on me and corporation. all work would stop? and could i go to jail or sumthing for incomplete jobs? also you mentiond id be personaly liable for debt ive cosigned. are my contracts for these jobs considers bedt? thanks
If you file a chapter 7 bankruptcy all work must stop immediately upon the filing. It would be considered a federal bankruptcy crime for you to continue to work on the projects after filing without specific bankruptcy court approval. The projects are the property of the bankruptcy estateFiveStarLaw41084.9458849537
and what about jail? is that a
Yes it is a possibility to have jail time if you commit bankruptcy fraud. In such a situation, it has been my experience that the debtor is almost always discovered. I suggest strongly that you do not engage in bankruptcy fraud
Whats bankruptcy fraud? we are out o money. But i dont feel loke i stole anything
Bankruptcy fraud would include continuing to work on corporate projects after the corporation files bankruptcy.
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