Hi again. Thank you for returning with the requested information. I researched the Bankruptcy Code and I believe that if the fine is assessed on your corporation rather than on you personally, then the fine will be discharged in bankruptcy. If the fine were imposed on you personally, then it will not be discharged in bankruptcy. Reference the following law:
§ 523. Exceptions to discharge
(a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual debtor from any debt—
(7) to the extent such debt is for a fine, penalty, or forfeiture payable to and for the benefit of a governmental unit, and is not compensation for actual pecuniary loss, other than a tax penalty—
As you can see, a fine imposed by a governmental unit on an individual cannot be discharged. Congress was specific in that it does not apply to businesses (and how could it…if a company went completely out of business, how could it ever pay the fine?). Therefore, assuming the fine is assessed strictly on your company, it can file for bankruptcy protection and the fine will be discharged. Barring very unusual circumstances of fraud or misrepresentations, or in cases where you personally guaranteed a debt, the company’s bankruptcy should not directly affect your personal finances or your credit report.
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DISCLAIMER: Please understand that the complexities of most legal problems cannot be sufficiently addressed in this setting. Accordingly, my post is intended as general information only, and should neither be construed as specific legal advice, nor as an adequate substitute for the retention of legal counsel.