Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hi and thank you for your question. In the future, you can request me to answer any further questions.
Can you elaborate on your question, I don't really see the question here, but these facts are helpful. thanks
Do I need to let the S corp fade away and file personal bankrupcy to protect my cash flow from cleaning aquariums?
Personal bankruptcy would remove your personal liability for these debts (as well as any personal debts too). If you want, you may be able to close the business as well, liquidating the assets and paying creditors according to your state rules for dissolving S-corps.
Most of the time an s-corp doesn't need to file BK, although it can.
what would be best for improving credit?
When you do a personal bankruptcy, most debtors can rebound in the first months after the case.
You can still stay in business, but the business is on the hook for those debts still.
Making payment on the debt would take many months. So bankruptcy would be better for us.
Your personal guarantees don't go away, even when you dissolve the business, so either a ch7 or debt negotiation would be needed to resolve the matter, otherwise they will garnish wages, or freeze your banks as they have already for the judgment
If you do not have any assets that are not covered by your exemptions, it is often a good way to get back on track.
I've had clients who file personal bk, dissolve the business, and move on, often starting another business aftewards.
If the attorneys have said you qualify for the chapter 7, it may be a good way to get back on track.
If you had an attorney set up the S-corp, talk to them (or your BK attorney) about dissolving the business as well.
I was quoted $1500 for personal bankrupcy does that sound in the ball park
With a business involved, yes, that is very reasonable.
Thanks I will call that attorney and start chapter 7
Ok, I wish you the best of luck, feel free to request me if you have any further questions.
to wrap up, click the accept button on the screen
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).