Small S corp need advice

[bc050873]

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

I have had a s-corp for a few years that has not turned a profit until now. The problem is we are way over extended with credit card bills and loans we still cant make the payments and have not made them in 90 days and more.

I owe amex 40,000
captial one SBA loan 12,000
advanta 4,000
and a few others maybe total 10,000

We are paying our equipment leases and some of the cards.

I have tried to work out a payment plan we could afford with them but they will not work with me. They tell me a personally guaranteed the loans but I dont recall it. I think we could pay them but it would take a long time.

We may have 25,000 in claimed assets in the business.

I have thought to get a new s corp under my wifes name and sell all the equipment to it and set up new bank accounts so we can pay our bills.

My question is can I protect the new business from a lean that way or is that bad to do that?

Will the creditors be able get the money from me on a personal guarantee? I am employed my wife runs the s-corp so I have a employer and a pay check.

I have pulled my personal credit report and it doesn't have any of these accounts listed. Can they put them on later? They are a few years old.

 

[Andy0192]

Google the term "piercing the corporate veil".

Beyond the legal advice side of things - why do you want to transfer a business that has never made money into your wife's name so you can continue to lose money?

 

[bc050873]

I will look that up.

On the business side why would I want to transfer in her name. She is starting to make some money now and we both feel that it can make it. We can pay the bills such and leases on the equiment and products. Its just the loan and credit card we cant pay. The payments are so I high we just dont make enough.

I guess if we was to close completely then we would be default on alot more than we are now. Upwards to 100,000.

 

[kiuyt]

I cant help u out in these matter**************..










http://www.foreclosure101.com/