Bankrupt an S-Corp?

[fpam]

State: IN
S-Corp

When we close the business this year, there will be $20K (LOC) in remaining debt. I think this LOC is unsecured, but I'll have to do some digging to be certain.

How will filing Chapter 7 bankruptcy affect my personal credit? Or does the corporation protect us from that?

This amount would take me a considerable time to pay back, but I will do it if it is going to adversely affect the my credit.

Any advice would be appreciated.

 

[fpam]

also...

All of my taxes are current.

 

[Antigone*]

All of my taxes are current.

Double check that you did not personally guarantee that line. Most "unsecured" lines are not completely unsecured or without recourse.

 

[fpam]

I just dug back to 2007. I will have to visit the storage unit for my original paperwork.

Thanks for your response, I'll be in touch.

 

[Betty]

Small Business Bankruptcy in Indiana-The Bankruptcy Law Offices of Mark S. Zuckerberg, P.C. This link may help you to some extent re busi. bk In.

There are also self help books on bankruptcy. Nolo has many self help books. They can sometimes be of great help.

Your best bet though is probably to talk to a bankruptcy attorney.

 

[HomeGuru]

State: IN
S-Corp

When we close the business this year, there will be $20K (LOC) in remaining debt. I think this LOC is unsecured, but I'll have to do some digging to be certain.

How will filing Chapter 7 bankruptcy affect my personal credit? Or does the corporation protect us from that?

This amount would take me a considerable time to pay back, but I will do it if it is going to adversely affect the my credit.

Any advice would be appreciated.

**A: did you personally guarantee any loans, leases etc. for the business?
You really need to do more research of the facts.

 

[Betty]

The link I posted in my post above gives you some items to consider as to your personal responsibility.