2007-07-03 12:23:54 · 3 answers · asked by catlover 1 in Business & Finance ➔ Credit
It depends on how the buisness was setup. If it is proprietorship then creditors can file claims against the owners personal assets to recoup losses. If however it was a corporation then the creditors can only lodge claims against the assets of the corporation unless the corporation behaved in a manner not befitting a corporation. Meaning that if the President or CEO treated the corporations assets as personal assets it is possible to pierce the veil and go after the President or CEO's personal assets.
2007-07-03 12:36:11 · answer #1 · answered by levindis 4 · 0⤊ 0⤋
Owners almost always guarantee the loan especially in small businesses. They will make the owners pay or file personal bankruptcy.
2007-07-03 12:28:42 · answer #2 · answered by shipwreck 7 · 0⤊ 0⤋
They can seize the businesses assets and liquidate them.
2007-07-03 12:28:15 · answer #3 · answered by Greg P 5 · 0⤊ 0⤋