how can i defend myself against the claimants wanting their money back..
2007-11-20 01:01:09 · 6 answers · asked by Anonymous in Business & Finance ➔ Insurance
If you're a "sole trader", you, personally would be borrowing the money and would be liable. If you've created a limited company, anyone lending to that company almost certainly would require your personal guarantee, so once again you will be liable.
There's no easy out, unless you wish to be declared bankrupt, with all that that entails and implies. The only way to defend yourself is to trade properly & profitably, quite frankly.
2007-11-20 01:16:39 · answer #1 · answered by champer 7 · 0⤊ 0⤋
You can't. If you guaranteed the loan for your company, you're on the hook for it. If you don't, and the company doesn't have good credit or assets, no one will lend you money.
If you're planning on borrowing money and then going insolvent, that's fraud, and criminal. So you could ALSO be facing jail time, in addition to having to pay back claimants.
2007-11-20 02:37:11 · answer #2 · answered by Anonymous 7 · 0⤊ 0⤋
catch 22 applies here.
while a proper corporation structure supposedly shields the owners from lawsuits from the creditors, every likely lender in the world has seen the soley owned corporation to evade creditors dodge before and won't lend without a personal guarantee.
not to mention that if you're the manager of the corp and it goes bk, the creditors can sue you as the manager if you've apparently profited unduly -- which amounts to looting the company for your benefit and their detriment from their viewpoint.
so, until your operation grows large, you likely can't
2007-11-20 01:08:18 · answer #3 · answered by Spock (rhp) 7 · 0⤊ 0⤋
In theory, you could incorporate so that only the assets of the corporation are at risk.
However in real life bankers or investors will often demand a personal guarantee of the loan.
2007-11-20 01:08:20 · answer #4 · answered by Tom Z 7 · 1⤊ 0⤋
You probably can't. You will have to sign a personal guarantee to get the money just to avoid what you describe. Then you will be personally liable for the funds.
2007-11-20 01:06:09 · answer #5 · answered by cajunbiggeorge 5 · 1⤊ 0⤋
Question of nicities.There are plenty that wouldn,t think twice.The ones you read about would and do syphon off first .What seems to be the norm is have no consciouses
2007-11-20 01:29:26 · answer #6 · answered by Anonymous · 0⤊ 0⤋