Startups Anonymous Est. 2013 · Read-only archive
Questions

We’re in the process of shutting down our startup, but have several thousand in debt. Does this get wiped away with the closure? We’re a C corp.

2 answers from the community

AAnonymous· Jan 22, 2014

I think this depends on whether you signed surety on any of those agreements. It might also depend on when the debt was made. Was there negligence involved - was the company already struggling financially and did the directors then knowing further increase the debt of the entity. Black listing might take place and depending on whether or not personal surety was signed, civil claims may be laid against the directors who signed off on the agreement.

AAnonymous· Feb 5, 2014

Depends, did someone sign something, a guarantee, were credit cards used ? Need more data, DONT HIRE A LAWYER ! The bills will skyrocket !