If my S Corp goes bankrupt, can they seize my home and/or personal assets to cover personally guaranteed outstanding debts?

Asked over 4 years ago - Poughkeepsie, NY

The debts are credit cards and loans.

Attorney answers (2)

  1. Matthew Bryant

    Contributor Level 13

    Answered . When you personally guarantee a debt, your personal assets are at stake. So irrespective of wording, the short answer is yes. The S-Corp's creditors with personal guarantees in your name may proceed against you individually. If you do not settle or have other valid defenses, it is possible that they will obtain a judgment and put a lien on your home and attempt to foreclose the lien and so forth.

  2. Timothy William Combs


    Contributor Level 13

    Answered . My colleague stated it very well. That is why some creditors require the personal guarantee.

    Disclaimer: This Post does NOT create an attorney-client relationship and does not constitute legal advice. Do not act, fail to act or otherwise rely on this Post. Consult a licensed attorney in your jurisdiction.

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.


Ask now

25,421 answers this week

2,709 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

25,421 answers this week

2,709 attorneys answering