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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2820
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I own an Illinois C-corp and I am the only shareholder. In

Customer Question

I own an Illinois C-corp and I am the only shareholder. In October of 2008 I surrendered all assets in leu of foreclosure. All taxes, utilities etc. were paid. 3 suppliers were not paid to the sum of $130,000. they have stopped contacting me for collection. I also have a $50,000 loan with a bank that I think has a signature guaranttee. I have been paying the interest on that loan. The coporation is in good standing with the state.
At some point I am thinking I will need to file chapter 7 for the corporation. I only want to assume the liability for the loan.
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 5 years ago.

Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions.

Terry L. :

That is feasible. The chapter 7 trustee will liquidate any remaining assets the business has, and will look into any preference payments that may have been made outside the normal course of business. All the business debts will discharge.

Terry L. :

You are correct, any personal guarantees will survive the bankruptcy, so you will need to make arrangements with them.

Terry L. :

Do you have any questions?

JACUSTOMER-ai3ntsor- :

do i need to file the chapter 7. Since it has been 2 years, are the preferential payments a consideration? How much would you charge to handle the case? I am currently keeping the coporation "acctive" because of the loan. The bank has been very patient and is still only charging 4%

JACUSTOMER-ai3ntsor- :

I have not filed for chapter 7 since the bank has been very cooperative, only charging me 4% I figure has long as the corp is "active" they will be patient. Are preferential payments a consideration after 2 years. Are my payments on the loan considered preferential.

Terry L. :

No, they would not be, the key is if they were in the ordinary course of business, so if you have been paying on this for some time, and was for business, then they wouldn't have any issue.

JACUSTOMER-ai3ntsor- :

thanks

Terry L. :

any other questions?

Terry L. :

thank you for your question, good luck to you and your business

Terry L. and 3 other Bankruptcy Law Specialists are ready to help you