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Old 10-15-2012, 19:27   #238
frizz
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Join Date: Jul 2012
Posts: 1,670
Quote:
Originally Posted by muscogee View Post
If you're incorporated BK is a get out of jail free card. I have seen wealthy people hire others to work for their corporations, pay themselves all the profits and ignore the bills. By the time the corporation is driven into BK, the owners have taken everything worth taking and get to keep it while those to whom they owe money get nothing.
One example does not make a trend...

This is not very common. For one thing, corporations that are owned by only one or only a few people will seldom be able to borrow money or buy anything on credit without signing for the dept personally.

Also, your description is a classic pattern of when the law will allow creditors go after the owners directly. They may either get the court to disregard the corporate protection, or get the bankruptcy court to grab back money from most anyone who got money from the corporation.

Google "piercing the corporate veil" and "fraudulent conveyance" to see how this works.
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