resolving debts for c-corp closing

[kimosavi]

What is the name of your state (only U.S. law)? IL

We have an incorporated c-corp with 3 founders. right now the company has $9K in the bank, owes $15K in credit cards and $2K to lawyers. we have $4K in assets (computers, etc -- current value)

we haven't started the process of resolving debt but I wanted to know if we close the company do all debt needs to be paid?

if yes, if we pay the lawyers and the company cannot pay the credit card, who is responsible for the debt? the credit card was open by one of the founder representing the company. we all authorized (verbally) that he go ahead a open the credit card. is he only liable or do we all have to share the debt as a company?

thank you in advance!

 

[FlyingRon]

You can't close the company without paying the debts (or going through bankruptcy).

The next question is to read the applications you signed on those cards to see if you actually made yourselves personally responsible for the the debt. If so, the credit card company will come after you all individually regardless of who did what or why.

 

[kimosavi]

Thank you FlyRon for your reply.

so even in the event of declaring bankruptcy the bank can come after the person that signed the contract?

the agreement reads:

"I understand that I am personally responsible for payment of all balances incurred on all cards associated with this account, and that the Company is jointly Liable for all balances. I understand
that if I leave the employment of the Company, I will continue to be responsible for the outstanding balances and I will notify Chase immediately to close the account and prevent further usage.
I have reviewed this Credit Card Disclosure. I agree that the information I have provided for my application is true and correct, and I authorize Chase to submit the application on my behalf."

but it reads

Customer
[company name]

next to the founder initials (one founder)

not sure if "I" mean the person or the people that founded in the company.

So i understand the one way or another the bank will come someone to get the debt paid. my question is:

will the bank come after just the person that signed the contract or the all the board of directors/members?

 

[FlyingRon]

I mean the person who signed the agreement.
COMPANY means the company.

 

[kimosavi]

Thank you FlyRon!