S Corp dissolution - debt question

[cltmoto]

What is the name of your state (only U.S. law)? NC

I have (had) an S corporation that went under last year and was dissolved as of Dec 31, 2007. There's some debt that is leftover from the company that was on business credit cards and a line of credit. I didn't want to file for bankruptcy - the company did poorly and I feel it's my obligation to pay off this debt.

So, here I am 10 months later and my financial situation has now changed. I'm no longer able to continue paying this debt and I'm not sure where I stand. It's all under the business TIN - none of it is in my name personally. Can I walk away from this debt or do I need to file some kind of formal bankruptcy. Remember, the corp was dissolved on 12/31/07.

Thanks in advance for any advice.

Tom

 

[tranquility]

What do you mean by "disolved"? Corporations should be wound up and all debts dealt with. You have a situation made more complex by your actions. Depending on the amount, see and attorney.

 

[cltmoto]

Response

By dissolved I mean that I went through the legal process in NC to shut down the corporation - articles of incorporation were removed at the state level, notified the dept of revenue that we were out of business, IRS notified, etc. We were basically a 1/2 man shop that had funded the business through our personal sources at first and then got a few sources of funding under the business name.

We were naive about how to run a business and it failed - no doubt about that and I take the blame for it. That's also the reason that I felt I needed to pay off the company debt even after it was closed. I realize now that at the time I should have consulted an accountant or attorney and delt with the debt (bankruptcy, etc).

Regardless, here I am 10 months later - the corporation is long gone, the business accounts are still out there and I've been sending in payments each month. I can't do that anymore. I'm sure I've really screwed myself by assuming responsibility for those debts, but was wondering if anybody had some advice.

 

[cltmoto]

Amount

Also meant to say that the amount is around $55K spread across two credit cards and a line of credit.

 

[tranquility]

Don't you make some representations to the state regarding outstanding debt when you dissolve a corporation? Also, you may have a problem if you favored one creditor (Or, yourself) to the detriment of another. Sorry, but a lot more facts than possible to express over this forum would be needed to make a determination in this situaiton. I think it would be worth an hour of an BK attorney's time to discuss your options.

 

[cltmoto]

Thanks

Thank you for your advice - I believe you are right and it's time to discuss this with a professional.

Regards,

Tom