inc, business closed being sued

[mikepp]

My wifes mother owned a florist, and it was incorporated, and she was killled in an accident leaving the deeply indebited business to my wife. After 2 yrs of trying to overturn her debt we closed the doors, sold off what inventory she had and paid what we could she had a few debts left and they are trying to sue the business and my seperately, can they do this and put a judgement on my wife? I thought INC was a protection factor for stock holder and my wife is president of an out of business business????? Help i'm confused

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by mikepp:
My wifes mother owned a florist, and it was incorporated, and she was killled in an accident leaving the deeply indebited business to my wife. After 2 yrs of trying to overturn her debt we closed the doors, sold off what inventory she had and paid what we could she had a few debts left and they are trying to sue the business and my seperately, can they do this and put a judgement on my wife? I thought INC was a protection factor for stock holder and my wife is president of an out of business business????? Help i'm confused<HR></BLOCKQUOTE>

Does your wife own any shares of stock in the corporation? Is she a legal owner or just an officer?

 

[Tracey]

Sounds like you co-mingled funds, by using your personal money to pay business debts. This may be sufficient to allow creditors to pierce the corporate veil & get the rest of your money. Get thee to a corporate lawyer, go.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.