? about closing a business before or after 341

[treadingwater]

My husband and I filed 9/15 and our 341 is 11/3. He is a contractor with a failing remodeling business and over half our debt was personally guaranteed business c. cards and LOCs. He is still working under the license of the old business because he has open permits and we need to eat. Our BK lawyer advised us to retain a business atty and close the current bus. and open another before the BK. We just can't afford to close and reincorporate right now. Is this going to be an issue at our 341? Also, what will the business creditors do when they see we are filing personal bk and have not received notice of the business closing? The business atty. said it only takes 48 hours to close a business and re-open another.

I'm confused and scared and my DH waits until the last minute on everything and is re-active vs. pro-active.

Any advice would be GREATLY appreciated?

[AngelinaCatHub]

This is a little over my head, but, just to respond, I thought the idea of incorporating was to separate you from the entity of the business or company? I am under the impression that the corporation is a separate person (entity) and stands on it’s own. Did you mix your finances with company finances (other than salary)?

[BROKENN]

Hub has good questions. We have a few members here with different types of business to get advice from.

We had to also close down our business. We weren't allowed to keep the business up during the filing. That was per our lawyer and we were asked about it.

I don't know all the ins and outs. But in a business filing, I would definitely get two or three lawyer opinions. Like your atty said, get a business lawyer (I am surprised he advised you with close/open though he is not a business lawyer).

[treadingwater]

He's a contractor (Class A) and it was an S corp. All of the debt (credit cards and line of credit) were personally secured by us. So it was all included in our Ch 7 BK, but we were told since the business had no assets, we didn't need to file BK on the business. Just close it and re-open under another name. We just don't have the $600 to incorporate a new company right now, and in the meantime he couldn't pull permits for new jobs. I just hope keeping it open isn't going to hurt us in some way.

[BROKENN]

Keeping the business open may be a problem. Especially if you BK on business debts. Have you talked to your lawyer again and told him the current situation of keeping the business open? You want to be prepared for your 341

Floridaguy has a S Corp, you can look through those threads.