Legal Question in Credit and Debt Law in Illinois
trying to collect money from corporation
2 friends and I formed a corporation in IL. We entered into a contract with state university to rent there convocation center to put on a 21 & under music party. We are the promotors so to speak. Party was a bust we lost 20,000 on sound/lighting/ and many other expenses to put the one day event on. We were supposed to pay the university for staff labor, door guards/consession operators etc. Normally the university takes this money out of the box office sales, but since box office sales were so horrible $1,000.00 now we owe them 4,500.00 more. The corporation we formed is out of money. If they were to sue us will the corporation protect us or will they be able to personally attack us for the money owed?? we have alot of complaints with there assistance in this event and believe this contributed to the poor turn-out?? Can the corporation file bankruptsy and should we?? THANKS
3 Answers from Attorneys
Re: trying to collect money from corporation
You have to be carefull. The corp could protect you if it was set up right. Bankruptcy is an option. You should talk to an attorney - many offer free consultations to discuss your options. Good Luck JJL
Re: trying to collect money from corporation
In general, you will not be liable personally for a corporate debt unless you signed a guaranty of the debt. There could be exceptions to the rule and cases do vary.
Re: trying to collect money from corporation
If they were to sue us will the corporation protect us or will they be able to personally attack us for the money owed?? They probably cannot touch you personally but it depends on your exact circumstances. Can the corporation file bankruptsy and should we?? A corporation can file bankruptcy - again what to do requires more info -
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