5 ms·
Even if it were changed to that, the story wouldn't end with "I couldn't buy food, my macbook pro got repossessed, and I went to federal pound-you-in-the-ass pr
by gnu6 15y ago
Even if it were changed to that, the story wouldn't end with "I couldn't buy food, my macbook pro got repossessed, and I went to federal pound-you-in-the-ass prison."
If you do get sued and your business collapses you can always start another one.
- analyst74 15y agoPersonal liability would be a nasty thing to deal with after your business failed. And you may not get to start another company with a huge personal debt.
- nknight 15y agoI wouldn't sign a contract for personal liability on something that big, but bankruptcy law exists for a reason.
- vacri 15y agoDidn't the US essentially nullify bankruptcy laws towards Bush's second term? As in, you can declare bankruptcy, but it doesn't clear your debts?
- nknight 15y agoUh, no. You're thinking of BAPCPA, which sucked, but was a far cry from what you're suggesting. Chapter 7 (straight liquidation) is harder but still very possible, especially if you've just been slapped with a multimillion-dollar verdict, while Chapter 13 (individual reorg) came out mostly intact, and 13 does result in discharges (but there are limits to the amount of debt you can have and qualify for 13). BAPCPA: http://en.wikipedia.org/wiki/Bankruptcy_Abuse_Prevention_and_Consumer_Protection_Act http://en.wikipedia.org/wiki/Bankruptcy_Abuse_Prevention_and... Chapter 7: http://en.wikipedia.org/wiki/Chapter_7,_Title_11,_United_States_Code http://en.wikipedia.org/wiki/Chapter_7,_Title_11,_United_Sta... Chapter 13: http://en.wikipedia.org/wiki/Chapter_13,_Title_11,_United_States_Code http://en.wikipedia.org/wiki/Chapter_13,_Title_11,_United_St...
- vacri 15y agoCheers, thanks for the info.
- gnu6 15y agoIt's so easy to incorporate it should always be done. I assume when someone starts working with that kind of money and has knowledgeable lawyers advising them that they'll be told to do that.
- rprasad 15y agoIncorporating without sufficient capital makes it almost trivial to "pierce the veil" of incorporation and go directly after the company's owners.
- gnu6 15y agoThat seems somewhat backward, because it would discourage those with limited assets from starting businesses and trying to improve their situation.
- nknight 15y agoThe point is that signing a contract for personal liability negates the incorporation.
- chc 15y agoThe contract had a personal liability clause, apparently. Assuming those are enforceable, it seems like you're downplaying the downside.