Do I have to pay an old business debt if I am on disability?

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Do I have to pay an old business debt if I am on disability?

I had an IT business which was dissolved 4 years ago but I have an outstanding
debt of 16,000 from the business. I am currently on disability, and unable to
pay. Do I have to pay that even thou the business is dissolved and was a
corporation? And even thou I am on disability?

Asked on April 17, 2018 under Business Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

1) Being on disability has *nothing* to do with your obligation to pay debts. That your source of income is disability does not absolve you of the debt, though it does make it harder for the creditor to collect from you (many types of disability payments cannot be garnished, removing one of their tools to collect).
2) If the debt was a *corporation's* debt, however, not yours personally, then are not responsible for it even if you were the corporation's sole shareholder (sole owner). The entire point of a corporation is to protect the owners (share- or stockholders) and employees from personal liability for business debts and obligations.


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