A liability is anything you owe to another individual or an entity such as a lender or tax authority. The term can also refer to a legal obligation or an action you're obligated to take. Both businesses and individuals can have liabilities. Your loan is a liability if you borrow money to purchase a car.
If the corporation or LLC cannot pay its debts, creditors can normally only go after the assets owned by the company and not the personal assets of the owners. However, the business owner can also be held responsible for corporate or LLC debts in certain situations.
A liability is a debt or obligation owed to any other person or organization, oftentimes referred to as a creditor. For example, if a company borrows money from a bank, the loan would be recorded as a liability on the company's balance sheet.
The legally bound obligation to pay debts is called a liability. A liability started as a legal definition, and refers to anything you are responsible for whether it is property, another person, or a legal issue.
In certain cases, yes, you can be forced to pay someone else's debts. If your spouse, for example, obtains a necessity of life (food, clothing or medical care) and cannot pay for it, you can be forced to pay for your spouse's debt.
Bankruptcy is a legal proceeding initiated when a person or business cannot repay outstanding debts or obligations. It offers a fresh start for people who can no longer afford to pay their bills.
Liability is the legally bound obligation to pay debts.
A corporation is an incorporated entity designed to limit the liability of its owners (called shareholders). Generally, shareholders are not personally liable for the debts of the corporation. Creditors can only collect their debts by going after corporate assets.
debt obligation means an obligation to make a repayment of money to another person, including accounts payable and the obligations arising under promissory notes, bills of exchange and bonds; Sample 1Sample 2Sample 3. Based on 14 documents.
"If there subsists any legally enforceable debt or liability on the date of presentation of cheque; the cheque gets dishonoured and the drawer fails to make payment of the cheque amount within the stipulated time period, after serving legal notice, the drawer of the cheque in question has to face trial under the N.I.
An obligation is a liability to other arising from past transactions or events, the settlement of which is expected to result in the future sacrifice of economic benefits (i.e. cash payment or provision of service).
By running your business as a corporation instead of a sole proprietorship, you generally protect yourself from personal liability for the business's actions or debts. In essence, the corporate veil ensures that the business and its owner are treated as distinct legal entities.
Piercing the corporate veil in California is a legal process in which a court allows plaintiffs to hold the shareholders or owners (or in the case of LLCs, its members) of a corporation personally liable for the corporation's debts and obligations.
One such situation is somewhat obvious but often overlooked – a person, including a shareholder or officer, can be held liable for the debts of a corporation if he or she has agreed that they may be held personally liable.
In the United States, when you owe somebody, you have the obligation to pay. That is a liability. A liability is a legal financial debt that resulted in business operations. The liability could be paid through money, services, and goods, and can be paid over time.
Binding Obligation means, with respect to a Party (a) any oral or written agreement or arrangement that binds or affects such Party's operations or property, including any assignment, license agreement, loan agreement, guaranty, or financing agreement, (b) the provisions of such Party's charter, bylaws or other ...
Fourteenth Amendment, Section 4: The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.
Economists use the term "legal liability" to describe the legal-bound obligation to pay debts.
insolvency. Generally speaking, insolvency refers to situations where a debtor cannot pay the debts they owe. For instance, a troubled company may become insolvent when it is unable to repay its creditors money owed on time, often leading to a bankruptcy filing.
Accounts uncollectible are receivables, loans, or other debts that have virtually no chance of being paid. An account may become uncollectible for many reasons, including the debtor's bankruptcy, an inability to find the debtor, fraud on the part of the debtor, or lack of proper documentation to prove that debt exists.
If you don't, the debt collector may keep trying to collect the debt from you and may even end up suing you for payment.
When a loved one passes away, you'll have a lot to take care of, including their finances. It's important to remember that credit card debt does not automatically go away when someone dies. It must be paid by the estate or the co-signers on the account.
(d) “Coerced debt” means a particular debt, or portion thereof, for personal, family, or household use in the name of a debtor who is a victim of domestic violence, or a victim of elder or dependent adult abuse, or a person who is a foster youth, incurred as a result of duress, intimidation, threat of force, force, ...
Courts can, in some cases, hold individual owners, members, or shareholders personally liable for business debts and obligations. This is where piercing the corporate veil comes in. Piercing is possible if the owners fail to maintain a separate legal existence between their personal affairs and the company.