Personal Debt-Information On Average Personal Debt, Personal Debt Consolidation Loan, Personal Debt Consolidation

tomato asked:


i own a business, all document are under the coporration name. when it went out the business, all debt will be against the corpporation or personal credit.

Don

Nick S asked:


Hi guys,

I was the CEO and majority owner of a Delaware corporation that is now out of business. The corporation is completely out of money and about to be dissolved. I formally resigned from the corporation in May, but just received a notice in the mail that I’m being sued *personally* in small claims court by one of the debtors (a contractor who is owed $5000).

The basis of his claim is that I “intermingled funds”, and therefor owe him the money personally instead of the debt being the responsibility of the Corporation. Is this a valid claim, or will it be dismissed by the judge in small claims court?

What *are* the valid reasons why the corporate veil can be pierced, and I could be responsible for paying him the $5000? Just trying to arm myself with information – any input appreciated.
I did not ever receive a personal check made out to me for funds with the corporation.

I did however, pay a debtor with my own money at one point as a loan to the corporation. So I guess that means I “intermingled funds”, but it was with me paying for stuff personally, not the other way around. I lost a lot of money personally.

Sammy Koogler

skinny minn asked:


I had an accounts at Wachovia that were transferred over to Wells Fargo with the merger. I owed money to Wells Fargo for a closed business act. (corp). The girl who opened my act. knew about this and assured me the my account would not be closed and that Wells Fargo could not take money out once the merger took place.

Well now I just found out that my acct is Froze and they are closing both my accounts and taking the money from my personal act. to satisfy the old debt of my closed Wells Fargo, Business act (corp.) I thought the whole point of having a corp. was that it is a sep. entity and that your personal assets cannot be attached to it? Am I missing something?

When I told this to the bank they told me that b/c my name is on the Corp. as “owner” they have a legal right to take money from my personal account.

This really put me in a bad financial position now. Can they do this?

Yon Ransbottom

skinny minn asked:


I had an acct with wachovia and wells fargo took them over. I owed Wells Fargo money from a previous closed business (corp) acct. Now that Wells Fargo has taken over they froze my personal account and are taking the money from the personal account to satisfy the debt of the closed Business (corp.) acct.

I thought that the whole purpose of having a corp. is so that your personal assets are protected. I was told it was a sep. entity.

Wells Fargo told me that they can take my personal funds b/c I am the “owner” of the corp?

Am I missing something? Is this correct?
This was not a loan. This was money owed for a closed checking acct. I did not personally guarantee anything. It was a corp. bank acct and now they are taking money out of my personal account

Jonas Branaugh

perkins asked:


The debts of a ‘C’ Corporation or a ‘S’ Corp. cannot be transferred to the Officers personally. But, can a Corp. be sued for the PERSONAL debts of an Officer of that Corporation?

Laura

Steven P asked:


I purchased an S-corp three years ago, primarily with seller financed debt. It was a stock transaction, so the debt is personal, not corporate. Currently, I deduct the interest paid to the seller (Rule 89-35).
I am considering an SBA loan to refinance the debt at a lower rate and longer term. The lender tells me it will be a loan payable by the business (corporate debt).
My question is how to handle the accounting. When I enter the loan payable to the SBA lender on the books, do I also need to set up an offsetting loan receivable from the shareholder (me)? If so, I will essentially be paying back the loan to the s-corp from s-corp distributions, with no cash changing hands. Are there other ways to handle the transaction without incurring any tax consequences? Thanks!

Krysta Stant

MJ asked:


Should the LLC be on his name only?
Thank you guys. Really good information. Hard to decide which is the best answer.

Denise

heavyd asked:


I incorporated my company in Nevada last year then applied for several line of credits. My corporation is a C-corp. I used an agency to help me applying for the line of credits and according to them, I’m the personal guarantor of the debt even though the line of credits will not appear on my personal credit reports. Business is not going to well so I’m thinking about folding my corporation. If I am not able to pay for all the corporate credit cards’ debt, will it affect my personal credit score?

Cesar Vos

Kaptndrow asked:


I am trying to increase my new corporations’ credit score by moving some of my personal debt such as cell phone to my corporate account. If i pay this debt from my own pocket each month will i, or my corporation, be penalized, say tax wise, or any other way? This is a C corp.

Royce Baradi