I opened a business - incorporated - in 2006. In 2007, we were not able to continue with the business. We closed down operations in Nov of 2007. We thought we'd talked with all creditors and either paid or charged off any outstanding balances. This week I was "served" with court papers from a creditor of the business. I spoke with them and they are not going to drop the suit. We have told them that the business is no longer operating and we do not have the money to pay. I didn't sign any personal guarantees on these papers for this business. I was more or less just the president on paper. I didn't have any day-to-day handling of the business operations and, again, didn't sign any personal gaurantees.
First, can I be held personally responsible if I didn't sign any personal guarantees?
Second, if I file bankruptcy on the corporation, will it affect my personal name and credit standing?
I am involved in another business since 2004, and want to make sure that it will not affect that business or my personal credit.
First, can I be held personally responsible if I didn't sign any personal guarantees?
Second, if I file bankruptcy on the corporation, will it affect my personal name and credit standing?
I am involved in another business since 2004, and want to make sure that it will not affect that business or my personal credit.