Legal Question in Business Law in New York

Corporate Fraud - Ownership Liability

Hi,

I am a business owner and I am being sued by another corporation for Corporate Fraud. I am also countersuing. The process is taking very long and with today's tough times I can no longer pay my attorney fees. My business is all but closed and I have had no transactions in thie corporation for the last year. As an owner am I liable for the lawsuit if I claim Bankruptcy?


Asked on 10/29/08, 3:03 pm

1 Answer from Attorneys
Warren Markowitz Warren R. Markowitz, Esq

Re: Corporate Fraud - Ownership Liability

This would depend on how the business was set up, and if you are being personally sued for the action.

Without additional information I am unable to provide you a firm answer. But in general, a shareholder, even an officer of a corporation is not liable for the debts of the company, that is the benefit of using a corporate entity. If you have an S Corp, things can be different.

I would come to some resolution with your attorney before venturing out on your own in this one.

I can be reached via email, if you would like to discuss things further

Good Luck,

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Answered on 10/29/08, 3:32 pm


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