Legal Question in Bankruptcy in Florida
I opened a business a year ago that is failing. At this point it is costing me money to keep the business open. I've still kept it open to try to pay the credit debt. I took out a credit card in the business name under the business ID#. The business is a sole proprietorship. It does bother me to consider this, but can the creditors go after me personally on a business debt?
1 Answer from Attorneys
Yes. As a sole proprietor you are 100% liable for all of the business debts as you and the business are the same legal person. It is just an alter ego of you.
Regrettably, this will mean that you may have to consider a personal bankruptcy.
Incorporation may have avoided this problem, but that boat has already sailed for this enterprise.
For more information about bankruptcy or debt, you can log on to our website at www.LaBellaLaw.com, or for more specific information about your legal options, we now offer a free consultation by telephone.
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