S Corp-bankrupsty

[Schoen]

Illinois,
My Fiancee has a S corp buss.that is filing chapter 7 are they responsible for paying the employees? Can employees come after officers, personaly. or are they protected by S Corp?

Thank you for any information that you can provide!!

Shawn,Illinois

 

[Taxguy]

S-Corp is a Federal tax election,...it is *not* a type of corporation. What you have is a standard Chapter 7 bankruptcy in which payment of wages to employees has a priority.

 

[Schoen]

S-Corp Bankruptcy

I appreciate your help, on previous Q. I have another Q, if there are threee officers of the corporation, are they all protected by the corporation, or can they be personaly sued?
Paying your employees is #1 in line in my book, but what if there is not $$ ? Are they protected?

Shawn, Illinois

 

[Taxguy]

>>are they all protected by the corporation, or can they be personaly sued? <<

Sued for what ?
Debts of a corporation are the CORPORATION's,...not of the officers.