My business is a corporation, and it is about to go under. Before it goes under, can I pull out the personal money I put in?
4 attorney answers
I agree with the advice of the other attorneys and would add that there are two laws which impact what you can do in your situation: first, bankruptcy law (which is federal law) and second, state corporate law (Texas Business Organizations Code), which requires you to notice creditors and resolve your debts and obligations before winding up the company and distributing any remaining assets to yourself. You also need to be careful to follow all corporate formalities (i.e. documenting director and shareholder decisions by resolution or vote) so that you do not create a situation where creditors can come after you personally. Definitely get an attorney.
Your proposed action may be seen as perpetrating a fraud on the rights of creditors, in which you case you might be personally liable. Do *not* take this action without first engaging an attorney to review the facts and apply the law for a reasoned opinion.
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The process you're going through is called "winding up", and it is very important that you be very careful in following some legal requirements to avoid losing your limited liability and opening yourself to personal liability to creditors. I would highly recommend at least speaking with an attorney to get some advice regarding how to go about facilitating that process to ensure actual or potential creditors are not able to attach claims to your personal assets.
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No you may not. You should read the bankruptcy code and understand that there can be criminal penalties imposed when someone tries to defraud the creditors. Do consult with a bankruptcy attorney so that you do not find yourself in worse trouble
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