Hello, I am in need of direction with respect to resolving corporate debt and possible dissolution of a corporation
The facts are that an owner of the corporation has filed a personal bankruptcy
, some of the debts listed in the personal bankruptcy are both personal and corporate (but were personally guaranteed). The personal bankruptcy has discharged and the case is closed. The corporation has now been sued by one of its main creditors for about $70k. The corp is not in bk, only the owner of the corp filed for bk.
The main goal here is to: avoid as much of the debt as possible and to keep running the business
Is the owner of the corporation able to dissolve the corporation in order to avoid the corporate debt or is that illegal? I noticed on the dissolution forms in California, one must state if there are outstanding debts and if those have been provided for or not.
A follow up question would then be, if one is able to dissolve the corporation in order to avoid the debt, is that person able to open a new corporation doing the same type of business?
If he can't dissolve the corporation to avoid the lawsuit debt or if he can't dissolve the corporation and restart a new company, then it probably doesn't make sense to dissolve the corporation, but then how does the debt get resolved?
What is the best way to handle this?