We need proper legal advice : Hope you can help us asap !
Our parents have a company business. They included us 3 kids in the incorporation of their company many many years ago-so there are 5 of us in total. However we are really not involved in the running of the company.
As it is a family run business... my parents do not really tell us how the company is doing. For a long time it was fine but then due to the financial crisis, bad decisions it is not doing very well. We had to slowly sell off properties and now the last property finally has a buyer but it is still not enough to pay all the outstanding debt.
Us kids are really totally not involved in the running of the company. Last year my younger sibling was able to leave the company but I the eldest and my middle sibling cannot as we were told minimum of 4 incorporators for 2 years. However we were able to reduce our shares to 1 each instead of 250,000 like before.
Since the company has been doing very bad for a few years already... I have already inputed a lot of money to help... more than I can actually plus we still have to maintain our parents monthly expenses. My other sister who was able to get out is also still helping us, in fact she gives more to them financially every month than I am able to.
Recently (last month) we found out that some BIR arrears were not paid. They have agreed to a payment schedule, however we are all now hanging on strings and really don't know what to do anymore. As our parents do not really want to listen to us plus I am actually abroad and my middle sibling who is still like me part of the company is not actually doing well financially, so he can not really help.
My question is,
1.will I and my sibling be liable for any legal case the company gets into even if we only own 1 share each now ? I am not aware if my parents have anymore debts aside from what I know.
2.How can we get out of the company legally ? Or protect ourselves from what is happening ?
When we signed the papers of incorporation before we didn't really realize the responsibilities involved... it was like just so they can meet the number of minimum incorporators to set up the company. Our parents are very headstrong and we can not tell them what to do.
3.Is there a cheaper way to file for bankruptcy ? who can we contact ?
4. As I am working abroad it is very hard for me to know what is happening.
I do not get any financial reports.... nothing. I have a family with a child so I am now concerned that this problem will affect my own family which is still vey young.
5. My parents have personally guaranteed loans to the bank even the place were they live in. Everything has been sold now except the place they live in which is still with the bank... plus they still have debt as the sale of the properties was not enough to cover all debts.
6. But they will be able to continue some work-smaller scale so maybe they can pay off some debt if agreed to be rescheduled.
7. We do not mind losing all as we can start over... It is the stress and peace of mind that we really want. It is so hard as we can not communicate well with our parents. We can not talk to them as they get angry every time we just want to know what is happening-so we can help fix the problem.
PLEASE HELP... WE ARE SO STRESSED NOW AND DONT KNOW WHAT TO DO OR WHO TO TURN TO. IN OTHER COUNTRIES THE GOVERNMENT CAN HELP FILE BANKRUPTCY AT NO COST OR MINIMAL COST. IS THAT POSSIBLE IN THE PHILIPPINES ?
THANKS AND HOPE TO HEAR FROM YOU SOON !