Legal Question in Business Law in Arizona

Questions reguarding dissolving a corporation

I am currently in the process of closing my business and would like some information on dissolving my corporation. What are my liabilities with current debtors (as far as utilities, equipement, etc)? If I dissolve the corporation will the corporate officers be personally responsible for any amounts due? The corporation currently has some outstanding bills for utilities and office supplies. Would the corporation need to file for bankruptcy if there are outstanding debts owed?


Asked on 12/30/00, 4:47 pm

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Questions reguarding dissolving a corporation

Many corporate obligations were personally guaranteed by corporate officers when they were incurred. This is particularly true of utility bills. The individual officers may well have forgotten.

If they are true corporate-only obligations, then the creditors will not get paid upon corporate dissolution, assuming insufficient assets to cover the bills.

Why dissolve the corporation? Even though it ceases to do business, it can remain alive. Winding up the affairs responsibly would require a plan to pay the outstanding indebtedness.

If the debt is large and there is no hope of it being paid, why file bankruptcy? Why not let the creditors take the company over and realize what they can from the remaining assets?

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Answered on 1/04/01, 8:54 am


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