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S Corp BK

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foldbak

Junior Member
What is the name of your state (only U.S. law)? California

My partner and I have an S Corp. We have been in start up for 11 months. We have raised 300k in investor capital with the intentions of acquiring a marina in up state NY for redevelopment. Investor terms were 90 days with 20% ROI. 250k went into escrow with a funding group that was to provide a 24MM acquisitions and construction loan. The remaining 50k was used for operations. We have corporate credit card debt and an office lease. Company assets are minimal and zero cash. We haven't received any personal compensation for the 11 month period. Me and my partner have leveraged ourselves to the max and have no real assets to speak of. We own homes but no equity. The funding group filed chapter 7 last Friday. What is our best course of action? Chapter 7?
 


HomeGuru

Senior Member
What is the name of your state (only U.S. law)? California

My partner and I have an S Corp. We have been in start up for 11 months. We have raised 300k in investor capital with the intentions of acquiring a marina in up state NY for redevelopment. Investor terms were 90 days with 20% ROI. 250k went into escrow with a funding group that was to provide a 24MM acquisitions and construction loan. The remaining 50k was used for operations. We have corporate credit card debt and an office lease. Company assets are minimal and zero cash. We haven't received any personal compensation for the 11 month period. Me and my partner have leveraged ourselves to the max and have no real assets to speak of. We own homes but no equity. The funding group filed chapter 7 last Friday. What is our best course of action? Chapter 7?



**A: from the looks of things, both the S Corp. and you and your partner need to file Chapter 7.
 

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