In the state of California, when a business is shutting down, the Secretary of State requires that an officer of the Corporation sign on to be responsible for the debts of the company. This leaves many small business owners wondering what is the point?
The answer to this problem is to place a defunct business into Chapter 7 Bankruptcy. The creditors of the company will be notified that the business is in Chapter 7, and is no longer able to pay it’s debts. The business will be shut down.
It is important to talk to an experienced Bankruptcy Attorney before it is too late. Creditors will often seek to pierce the corporate veil and pursue the business owner for the debts of the company.
Call 858 499 8951 to schedule a free consultation.