Legal Question in Business Law in Georgia

S- Corp Dissolution

We are trying to dissolve an s-corp in ga. If my partner (one of the stockholders) personally guaranteed some of the loans, will they try to come after me when we dissolve. We have taken losses the past 2 years and need to end this bleeding now. After we try to sell the trucks, what is the next step, as there will be no money left to pay anything else. Will he (or should he) have to file bankruptcy?


Asked on 4/14/08, 10:26 pm

1 Answer from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: S- Corp Dissolution

In order to properly dissolve a corporation, the corporation must certify that all known debts, liabilities, and obligations of the corporation have been paid and discharged. If you dissolve without doing so, you could be help personally liable for the obligations not so discharged or paid.

Assuming the dissolution is properly done, you should be protected from the creditors of the company, but there are exceptions and there is no telling if the creditors will "come after you."

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 4/15/08, 8:41 am


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