Legal Question in Bankruptcy in California
If I'm a 30% silent partner of an S corp company that goes bankrupt would I have any personal potential risk? Could the other partners or courts come after me in any way.
Asked on 6/03/13, 8:03 pm
2 Answers from Attorneys
Scott Jordan
Jordan Law Office
You own 30% of the stock in a bankrupt corporation. Depending on how the corporation was run and whether there was any fraud against creditors, yes, the creditors could come to you to pay the debts.
Did you personally guarantee any credit obligations?
You say your were a "silent partner", does that mean you were not involved in the daily operations of the company? What was your role in the company?
Answered on 6/04/13, 9:35 am
Michael Avanesian
Avanesian Law Firm
Yes, it is possible. If you want to protect yourself you absolutely must seek bankruptcy counsel.
Answered on 6/04/13, 10:04 am
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