Posted on: 25th Oct, 2008 04:07 pm
If an Incorporated Small Business files bankruptcy, what risk is there of debtors being able to go after personal property of the business owner?
Hi gsberg!
Welcome to forums!
If your business is organized into a corporation or a LLC, your personal assets are usually protected from business creditors by law. You will have a form of asset protection which is known as Limited Personal Liability. Creditors cannot take the personal assets of the owner to pay business debts unless the owner gives up the limited liability protection. In certain cases, the small business owners have to give up their limited liability protection and creditors may claim your personal assets if your business cannot pay.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
If your business is organized into a corporation or a LLC, your personal assets are usually protected from business creditors by law. You will have a form of asset protection which is known as Limited Personal Liability. Creditors cannot take the personal assets of the owner to pay business debts unless the owner gives up the limited liability protection. In certain cases, the small business owners have to give up their limited liability protection and creditors may claim your personal assets if your business cannot pay.
Feel free to ask if you have further queries.
Sussane