scorpintrouble
Junior Member
What is the name of your state? Washington State
Hello, I have a Washington S-Corp which is 100% in my name. I've been in the process of trying to get some of my products published but it seems like it's become too little too late. I'm tapped out and no longer have funds to pay my bills. All of my business debts are unsecured credit cards. I have an SBA loan with Capital One which I believe is also unsecured.
I have, of course, had to sign as a guarantor for all these lines of credit. The business has no real assets except for a computer and a couple product concepts. If the business defaults on the payments I expect the creditors will come directly to me for payment.
HERE'S MY QUESTION: I spoke over the phone to a local attorney who suggested that, in this particular situation, I skip filing for business bankruptcy and simply file for personal bankruptcy and just let the S-Corp go into default.
What is the process creditors use when an S-Corp business can no longer pay and the 100% owner has filed personal bankruptcy?
Is there a lengthy lawsuit process that will require an attorney?
Will personal bankruptcy protect me from the debts of the business?
What will the creditors demand if the business is not officially declared bankrupt?
9 out of 10 start up businesses fail. This was an honest and worthwhile venture that just didn't quite make it. I'm willing to go into personal bankruptcy for having tried something worthwhile. I would just like to know what the options and processes are so I have good advice going into this.
Mike
Hello, I have a Washington S-Corp which is 100% in my name. I've been in the process of trying to get some of my products published but it seems like it's become too little too late. I'm tapped out and no longer have funds to pay my bills. All of my business debts are unsecured credit cards. I have an SBA loan with Capital One which I believe is also unsecured.
I have, of course, had to sign as a guarantor for all these lines of credit. The business has no real assets except for a computer and a couple product concepts. If the business defaults on the payments I expect the creditors will come directly to me for payment.
HERE'S MY QUESTION: I spoke over the phone to a local attorney who suggested that, in this particular situation, I skip filing for business bankruptcy and simply file for personal bankruptcy and just let the S-Corp go into default.
What is the process creditors use when an S-Corp business can no longer pay and the 100% owner has filed personal bankruptcy?
Is there a lengthy lawsuit process that will require an attorney?
Will personal bankruptcy protect me from the debts of the business?
What will the creditors demand if the business is not officially declared bankrupt?
9 out of 10 start up businesses fail. This was an honest and worthwhile venture that just didn't quite make it. I'm willing to go into personal bankruptcy for having tried something worthwhile. I would just like to know what the options and processes are so I have good advice going into this.
Mike