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Category: Bankruptcy Law
Satisfied Customers: 17228
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Sole S-Corp Owner is personally liable for debt used for the

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Sole S-Corp Owner is personally liable for debt used for the business. Should he do a personal BK, a corporate BK or does he have to do both?


Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on


If the owener is personally liable, than he should file a personal bankruptcy,


their would be no reason to file a corporate bankruptcy unless he wants to keep the same corporation,


The costs of filing a corporate bankruptcy is not worth it,


Once he files the personal his personal liability for the debt is removed.


re: "unless he wants to keep the same corporation" Does he lose the corporation if he files a personal bankruptcy?

WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you
If he files personal bankruptcy, the trustee will look into the shares owned by him in the corporation, if the shares of the corp is worth anything, it is possible but unlikely that the trustee could force a sale of the shares of the corp.

Usually, you would start a new S Corp., after the bankruptcy and start the business under the new name.