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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Hi. I am a small independent contractor. I have a debt load

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Hi. I am a small independent contractor. I have a debt load of approximately 35-40k. My business is an S Corp. If I file bankruptcy on the business, what affect does it have on my personal assets? More specifically, my wife's assets.

Hello,


Thank you for your question. I am happy to assist you.


Assuming you do not have personal liability on the corporate debt, neither the personal assets of you or your wife would be affected by the Chapter 7 bankruptcy of your corporation. However, if you are personally liable on the corporate debt, you would remain personally liable on the debt even after the corporate filing.


I hope that the information which I provided was helpful to you.


Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER


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Customer: replied 8 years ago.
How do I determine if I have personal liability on the corporate debt? I assume you mean with regard to credit accounts, etc., instigated and backed by my SSN? Further, the debt we are dealing with here consists of unpaid employee withholdings to the IRS, Supply house credit lines, and credit cards used for travel expenses. All of which I applied for and was granted. Is this the nature of the "personal liability" you mention?
Hello,


How do I determine if I have personal liability on the corporate debt?
You will need to look at each debt individually to determine if you have contractual or statutory liability.


I assume you mean with regard to credit accounts, etc., instigated and backed by my SSN? Anything and everything.


Further, the debt we are dealing with here consists of unpaid employee withholdings to the IRS, Typically there is personal liability.


Supply house credit lines, and credit cards used for travel expenses. All of which I applied for and was granted. Is this the nature of the "personal liability" you mention?
Yes.


I hope that this information has helped you.


If I can be of assistance in the future, please ask for FLAandNYLawyer.


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THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE

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