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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17084
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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In case a Delware Inc with Employees in California files for

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In case a Delware Inc with Employees in California files for bankruptcy are there personal liability for directors or executives that they may become personally liable for the payroll?

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

In a bankruptcy of a corporation, either a chapter 11 or 7, personal liability to executives or directors would not be an issue,

WALLSTREETESQ :

they would be protected by the corporation,

Customer:

ok

WALLSTREETESQ :

they would not be personally liable for payroll or corporate liabilities or debts.

Customer:

Payroll was paid april 1st, next is April 15th

Customer:

so personal liability would not incur should bankruptcy occur now

WALLSTREETESQ :

Unless the employees can sue the members personally for fraud or intentional misuse they individual members would be protected

Customer:

or let say mid next week, without the payroll having been paid?

Customer:

would fraud or misuse include knowledge of potentially now knowing if the company would be able to make payroll in advance?

WALLSTREETESQ :

that is possible, however hard to litigate,

Customer:

ok

WALLSTREETESQ :

as evidence will be needed that the Board, knew they would not pay employee wages, and that they made the employees work for free,

WALLSTREETESQ :

If that may be the case, a personal lawsuit against the individuals should be brought,

Customer:

so as long as being able to make reasonable evidence that the company would recieve money to make payroll they would be safe?

WALLSTREETESQ :

yes,

Customer:

OK. Good. I think I understand. Slight risk, but manageble. thank you

WALLSTREETESQ :

Good luck, and if think their is fraud, contact the State Attorney Generals office as well

WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you

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