What are your personal responsibilities towards an LLC business debt?
Date: Thu, 02/04/2010 - 23:47
I have over $70k in business debts which I no longer can afford to pay. The business has gone south over the past years and I have accumulated all these debts by defaulting on paying the suppliers. I want to know, what would happen if I just quit paying? Would I be taken to court and have lien against my property for not paying this debt?
Actually, the answer is not necessairly. It will depend on the
Actually, the answer is not necessairly.
It will depend on the law of your jurisdiction regarding LLCs, the wording of the contracts you signed with suppliers and whether or not you personally guaranteed any or all of it.
That said, most suppliers and banks and credit card companies for that matter are not going to extend credit to an LLC--unless that LLC has a long history and sufficient assets. So, if you signed a gurantee then yes they will be able to chase you personally.