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Category: Bankruptcy Law
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I am organizing my records to file personal bankruptcy. I

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I am organizing my records to file personal bankruptcy. I am the soler owner of a Sub Chapter S Corp in Massachusetts, and I owe the company money for commission advances and loans I took from it several years ago. In a personal bankruptcy situation, what is the status of my corp as a creditor? Will this debt be discharged along with other debts if I file either Chapter 7 or 13?
Thank you for your question.

Your corporation should be treated as in any other creditor. In a Chapter 13 situation, it is entirely possible that the debts would not be discharged. Under Chapter 7, everything gets discharged. The only complications here would arise if you had fellow shareholders, but since you are the only owner of the corporation, I would not foresee any problems in getting your personal debts to the company discharged.

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Nathan Moore
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