Re: Personal Bankruptcy of S corp officer

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Sorry, it sounded like a homework question. We get them from
time to time.

On 8/24/05, E Ryan wrote:
> Homework????? It is a construction business.
>
> Or do you mean is this a homework question? No it is my
> husband and I am concerned he(we) will pay for his partner's
> debt. The partner takes weekly draws in addition to a salary
> and cannot make it through the week without borrowing more.
>
> On 8/24/05, 00 wrote:
>> Homework?
>>
>> 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?