personal liabilities of debts?

[sexydudemanguy]

What is the name of your state? Illinois

Hello, I've started a corporation with a friend because we intend to start a cafe, our greatest source of funding will be loans, and if in desperate need, credit cards. If our business fails, (a business teacher of mine once told me to always have a "way out"), or something like that, and we declare bankruptcy, will our debts be nullified? debts accumulated by credit cards and loans that are associated with the company?

I just want to be sure that if something goes wrong, our lives wont be crippled



for one year I've been an e-tailer (since i was 18), a sole proprietorship, I have experience running a business but not such with a physical location etc, have never been in debt and have never needed a loan or a credit card.

any advice is appreciated, thank you

 

[JETX]

Hello, I've started a corporation with a friend because we intend to start a cafe, our greatest source of funding will be loans, and if in desperate need, credit cards. If our business fails, (a business teacher of mine once told me to always have a "way out"), or something like that, and we declare bankruptcy, will our debts be nullified?

Semantics....
No. Your personal debt won't be discharged unless you file personally and the court orders a discharge. The simple filing does nothing other than put a stay on attempts to collect.
Same for the corporation.... the corporation would have to file under its name.... and debts discharged if the court orders.

debts accumulated by credit cards and loans that are associated with the company?

Again, the corporation is a separate legal entity and must file on its own for its debts. Any personal debts you incur would require you PERSONALLY to file.

I just want to be sure that if something goes wrong, our lives wont be crippled

Pretty simple.... don't borrow more than you are willing and able to repay.

 

[Just Blue]

Semantics....
No. Your personal debt won't be discharged unless you file personally and the court orders a discharge. The simple filing does nothing other than put a stay on attempts to collect.
Same for the corporation.... the corporation would have to file under its name.... and debts discharged if the court orders.


Again, the corporation is a separate legal entity and must file on its own for its debts. Any personal debts you incur would require you PERSONALLY to file.


Pretty simple.... don't borrow more than you are willing and able to repay.

JETX...Read this guys other thread...This is a "man" that doesn't want to take responsibility for any of his actions. All unplanned pregnancies should end in abortion and the government should pay child support for him if a woman he is "banging" get preggers and chooses to carry to term. He is gonna get that put into "law"...