Yes, the corporation paid about $2,500.00 towards the debt with last payment being in 2010.
No I never formally agreed to personally pay the debt. I did however have a phone conversation discussing the situation with the owner of that company and expressed my apologies along with what my intentions were. I did not want to file bankruptcy the over all debt is at $15,000.00.
At the end of everything, I would have accepted the debt personally. Just because I wanted to act with integrity. Although the reason I set up the corporation and carried insurance in the first place was to give a level of protection to my family and person.
Thank you for your follow-up. I appreciate the detail.The reason I asked about whether or not you made payments outside the corporation is because that can create a claim and argument that the debt was formally 'assumed' personally by you, making you personally liable for it. Based on your facts I am not sure that took place if you never made payments outside the corporation. But please be aware that if you were the sole owner of the S-Corp, the creditors can potentially file suit against you by claiming that you and the entity were really the same 'alter ego', and use that as a basis to attempt to pierce the corporate veil of this entity and therefore try to get at your personal assets. Discussing on the phone, if recorded, that you were going to cover the debt, may be deemed an assumption also.Likely the best suggestion may be to let the attorney know that if he is serious in pursuing you personally, you will simply file for bankruptcy and be done with it, but if they actually want to get paid at some point, you will instead agree to a signed payment plan that would permit you to slowly pay out this debt to them. Unless they want to lose everything, I really do not see them as permitting a bankruptcy as a viable option.Good luck.
Good advise! Thanks...
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