Re: Personal Bankruptcy of S corp officer

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Depends on what the S corp owners have agreed to secure
their debts. It's quite common in small enterprises for the
owners to have to back up bank loans with their personal
guarantee.

On 8/24/05, E ryan wrote:
> The s corp has two officers each own 50&37; of the stock.
One
> officer has excessive personal debt not related to the
> business. If this officer files for personal bankruptcy
or
> creditors begin to take collection action is the S corp
> cash in danger. For example if there is $60,000 in cash
in
> the S corp bank account (both officers can write checks)
> would any, all of this money be required to pay off
> personal debts of the one officer?