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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Hi We will be closing our business short, it is a pub restaurant.

Customer Question

Hi
We will be closing our business short, it is a pub restaurant. The Landlord has agree to give us a small amount for equipment etc that we are leaving there
This will be used to pay off our overdue sales tax
in addition to this we owe around 11k for a credit card processor loan we had . We will have no assets or collateral after we leave. Can we file this loan with Bankruptcy? it is not personal guaranteed and we are an LLC company
the reason im asking is because in agreement if we default the would take assets
Thanks
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 4 years ago.

cfortunato :

Hi - my name is Chris and I'm a Bankruptcy attorney here to assist you.

cfortunato :

If you will be closing your business, and if your business has no assets, there would be no purpose served by filing a Bankruptcy.

cfortunato :

If the loan is not personally guaranteed, and if your business has no assets and is closed, the lender would not be able to do anything to you or to your business.

cfortunato :

This would be so, whether or not you filed a business Bankruptcy.

Customer :

sorry, can you clarify something

Customer :

we have a UCC outstanding for the business loan mentioned before. The landlord is now worried if he pays us for the equipment that the loan compnay can go after him for equipement?

Customer :

the thing is we really need the money to pay our outstanding sales tax, please advise, thanks

Expert:  cfortunato replied 4 years ago.
I do not know the answer to your second question - as I am not a Business Law expert. You should be able to find out by posing that question in the Business Law section.
Thank you.