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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2891
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Can an individual be sued personally, post discharge, for corporate

Customer Question

Can an individual be sued personally, post discharge, for corporate debts under an alter ego theory of liability, when the alleged conduct giving rise to the alter ego theory of recovery occurred pre-petition?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 5 years ago.
Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

So, let me get this straight. First, did the corporation file bankruptcy?
Second, were their personal guarantees for the debt in question signed by the individual?
Third, what is the type of debt in question? describe the situation.
Forth, what is this 'conduct' you refer to?

Thanks in advance for the additional info.
Customer: replied 5 years ago.
No the corporation didnt file. No personal guarantees. It is a breach of contract/indmenity debt. Comingling of assets, other factors. I'm just wondering if the personal discharge precludes filing against the individual post discharge for alter ego arising pre-petition.
Expert:  Terry L. replied 5 years ago.
If you list the creditors as possible liability, and they do not object, then it will be discharged in the personal bankruptcy. The only exception if the fraud or wrongdoing is not able to be ascertained until a later date. IF these issues are being mentioned now, it is likely that it would draw an adversary objection during the bankruptcy. If not, then the debt is discharged if it is dischargeable in the case.