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Ask Asad Rahman Your Own Question
Asad Rahman
Asad Rahman, Attorney
Category: Business Law
Satisfied Customers: 1498
Experience:  Practicing Attorney with 10 years experience
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I'm a 50% shareholder of an all but dead s-corp that has no

Customer Question

I'm a 50% shareholder of an all but dead s-corp that has no assets left. We had serious debt and a couple of liens and judgements against us. The only asset we had as the s-corp was a piece of property that I tried to save but went into foreclosure due to the other partner not stepping up to help save our credit and property. the piece of property owned by the s-corp was going into foreclosure and was placing my families adjacent piece of property in jeopardy due to a collateral loan against their property. After all was said and done I was able to sell the property for no profit. In order to close escrow I had to pay all the debt which we owed just to save my families property. I am a 50% shareholder but paid 100% of the debt owed by our company in order to avoid foreclosure, ruined credit, loss of sleep etc.. my parter said he would make right after the sale of property but has yet to pony up for his debt. By paying all debt of the s-corp I was able to close the sale of property before foreclosure but cleared all debt for my partner as well. His debt was $20,000.00. Can I sue him for his portion of debt as a 50% shareholder. Can I sue him as an individual or does it have to be done as an s-corp shareholder where I have to have legal representation?
Submitted: 7 months ago.
Category: Business Law
Expert:  Asad Rahman replied 7 months ago.

I am very sorry to hear about your trouble. You do have a right to sue both as a shareholder and in your individual capacity.

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