Chapter 7 personal and having S-corporation??

[seafresh]

just like to know if anyone had experience going personal bk and owning Incorporation(100% share ownership)??
I was told that it will be the up to the trustee as to try to sell the business or let me shutdown and liquidate??
i would love to get my business off my back.. been trying to sell it of the last 2 yrs and not hot area for potential buyers..

thx

seafresh

[B12]

Just interested. What kind of business?

Will the business do well enough for you to support yourself when your personal debt is eliminated?

I have a sole prop and want to keep it. Finally taking off after 4 years! but not before it put me in personal BK.

[seafresh]

Just interested. What kind of business?

Will the business do well enough for you to support yourself when your personal debt is eliminated?

I have a sole prop and want to keep it. Finally taking off after 4 years! but not before it put me in personal BK.

No, it could but too much debt.. plus its very stressful and just need standard 9-5 job for while until i get back to my feet.
also want to start something new(without employees) after the BK.

the biz is taking toll on my health and my personal life.plus i want to get out the state.. got too many bad memories.. divorce...

well wish u luck with biz..

seafresh

[B12]

"WITHOUT EMPLOYEES"

I hear you, lol. It is definitely the worst part of being an entrepreneur.

I went to work 9-5 after retiring from my first business. First job lasted 3 months. I got fired. Second job lasted 3 weeks. I got fired. Seems like the "boss" did not like me telling him how to do his job better, LOLOL.

My son yelled at me and asked me what the hell did I think I was doing trying to work for someone.

He was right. All 3 of my kids are entrepreneurs. I think it is in the bloodline.

The most successful people have failed at 3-5 businesses before becoming multi millionaires.

You will be back and I wish you all the luck in the world.

[emaretta]

I'm filing chapter 7 and own 50% in an s-corp, the only debt we have are 3 business credit cards which I personally secured so my atty said I could include them in my bankruptcy. There are no assets in the business and he said that creditors may try to come after the business b/c even though I wil personally wipe out the debt the "business" is still liable. He said if the creditors get bad enough trying to get something out of the business that we could file business bankruptcy.

[seafresh]

"WITHOUT EMPLOYEES"

I hear you, lol. It is definitely the worst part of being an entrepreneur.

I went to work 9-5 after retiring from my first business. First job lasted 3 months. I got fired. Second job lasted 3 weeks. I got fired. Seems like the "boss" did not like me telling him how to do his job better, LOLOL.

My son yelled at me and asked me what the hell did I think I was doing trying to work for someone.

He was right. All 3 of my kids are entrepreneurs. I think it is in the bloodline.

The most successful people have failed at 3-5 businesses before becoming multi millionaires.

You will be back and I wish you all the luck in the world.

thanks for the words...
have some ideas for future biz. but want to cool off for while.

wish u the best too

seafresh

[Dollar Bill]

Emaretta....

I'm In The Same Boat With An C-corp. Are You Married?

My Atty Warned That The Creditors May Sue The Corp Since They Cannot Get Anything From Me.
****ultimately He Mentioned That They May Try To Attach To My Wife Due To Ca Comminity Prop Law.***

Have You Heard Of That??

[seafresh]

I'm filing chapter 7 and own 50% in an s-corp, the only debt we have are 3 business credit cards which I personally secured so my atty said I could include them in my bankruptcy. There are no assets in the business and he said that creditors may try to come after the business b/c even though I wil personally wipe out the debt the "business" is still liable. He said if the creditors get bad enough trying to get something out of the business that we could file business bankruptcy.

same heres only reason that I had declare bankruptcy was all the debt that was accumulating from slow months of sale and I just felt i could not carry the business further. My lawyer advice me to go personal bankruptcy, that way my business creditors can not come after me personally( i have biz loan and franchise agrmt) others are few vendors and 3 large max out credits.

i know they will file to come after my ex and my current wife.
they would have figure which percentage was my ex, my single time and 1 yr i have been married. so it get compicated..


yes, in community property, they can come after your spouse. also depends on if she sign any documents with her name or not. only thing that my ex sign was franchise agrmt back 2001.
took her name off when i renogiate the biz loan back 2004.

just check with lawyer about CA laws..

good luck..

seafresh..

[seafresh]

Emaretta....

I'm In The Same Boat With An C-corp. Are You Married?

My Atty Warned That The Creditors May Sue The Corp Since They Cannot Get Anything From Me.
****ultimately He Mentioned That They May Try To Attach To My Wife Due To Ca Comminity Prop Law.***

Have You Heard Of That??

yes, they can...
but me i just want my business to sold or liquidate to payoff my debt...

[seafresh]

possible buyer of biz.. what happens during ch7?

ok, i have possible buyer who is still interested in buying my biz.
he knows that i have filed BK. also if he does that buying the biz, he is free sale(free of liens) (benefit for him).
I know that it is up to the trustee to decide what is best for creditors. even with sale, it does not cover my business debt and my personal debt.
What is likely hood of him to approving the sale?? also I was told that proceeds from my biz will first satisfy my personal debt and then my biz debts...

anyone who had experience in this??

thx

[emaretta]

Originally Posted by Dollar Bill
Emaretta....

I'm In The Same Boat With An C-corp. Are You Married?

My Atty Warned That The Creditors May Sue The Corp Since They Cannot Get Anything From Me.
****ultimately He Mentioned That They May Try To Attach To My Wife Due To Ca Comminity Prop Law.***

Have You Heard Of That??

yes, they can...
but me i just want my business to sold or liquidate to payoff my debt...

Doesn't being incorporated protect the owners from any personal liability? Meaning creditors can only come after the business? I own the company jointly with my husband but I was the only one who personally guranteed the business credit cards. How would the creditors be able to come after my husband personally? Even in a shared property state, it's legally business debt that I myself guranteed.

[Dollar Bill]

I may be late on the reply....but that is what my BK atty mentioned. Shared property state, they can supposedly garnish his wadges. He had a benefit to money you've made through the corp debt etc etc. He said it is unlikely, but can and has happened.

My poor wife is so upset. I feel so bad that it could force her into a BK.