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Dissolving a corporation in debt

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    Dissolving a corporation in debt

    I am not seeking legal advice just trying to understand what this sentence means if it is standard verbiage. If it's not and I need to seek legal advice in my state I will happily do so. Just let me know that.

    I have a corporation of which I am the sole owner. It was my understanding that it was better to dissolve the corporation and then file a personal BK rather than filing BK for both. However, when I looked into dissolving the corporation my state requires me to swear to the following, "All debts, obligations and liabilities of the corporation have been paid and discharged or adequate provision has been made therefore."

    My business is in debt. I have two credit cards both with personal guarantees. That is the only debt my business has. It has no assets remaining.

    So my question is whether those personal guarantees represent "adequate provision" or will I have to file two BKs.
    So the poor debtor, seeing naught around him
    Yet feels the narrow limits that impound him
    Grieves at his debt and studies to evade it
    And finds at last he might as well have paid it.

    #2
    Speak to a bk attorney, but you will probably want to bk the corp. If you're doing a personal one too, the corporate one shouldn't cost but a few hundred extra.

    Better to be safe than have perjury on your hands.
    All information contained in this post is for informational and amusement purposes only.
    Bankruptcy is a process, not an event.......

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      #3
      My attorney advised me that the personal guarantee was not enough in Texas. I'm filing two bankruptcies simultaneously, one for my company and one for my personal affairs.

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        #4
        Does the corporation have any value? I am assuming you will be shutting the Corporation down. I had a very similar situation and my attny and other post on this site recommend doing nothing with the corporation.
        Eventually the State will dissolve the Corporation Administratively due to not paying for the annual fee.
        Do not waste your money on filing for a company that you do not receive a discharge on. I hope you consider this and event talk to a different attny before filing.

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