question about filing for bankruptcy?
Tags:bankruptcy lawyer, business credit card, business debts, personal bankruptcy, personal credit cards,
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-Have owned a franchisee for 2 years (it’s a corporation, INC)
-Have maxed a single credit label underneath a commercial operation name (which is additionally privately guaranteed)
-Have borrowed income from personal credit cards
-Owe Employee, Sales as well as Quarterly Taxes
-Owe Royalties
-I am a single month at a back of upon lease
-I can’t run a commercial operation any some-more as well as we am utterly out of income to try to recover. Every day a commercial operation is open is putting me some-more in debt. we do not wish to tumble at a back of upon payroll.
I spoke to personal Bankruptcy lawyer. He referred to to possibly record for personal failure given a commercial operation credit label is additionally privately upon trial (so all a commercial operation debts will hurl over to personal anyway) as well as engage my spouse.
The franchise of a emporium is underneath a Franchisor name. we am only a subleasor.
We have been we do a office work now. Can we only tighten a emporium down starting Jan 1, 2008? to equivocate removing some-more in debt?
What have been your opinions? What have been a pros as well as cons of this?
thank we for your help!
Related solution post:
Depending on the state you may not have to include your spouse in a personal bankruptcy.
By all means, if you can’t afford to keep running the business, you need to shut it down, you certainly don’t need to incur MORE personally guaranteed debts. If the company has any assets you want to liquidate them to pay off as much of the debt as possible. A chapter 7 for the company is where this would come in handy, because then you can assure the right debts get paid first (ie, secured debts and the taxes).
The taxes are a huge issue, they do not go away, but if they are only owed by the corporation and not yourself, that shouldn’t impact you personally (you really need to consult a tax attorney about this).
You should contact the landlord of the lease about shutting down and turning possession back over. The landlord will most likely appreciate this since they’ll lose less money if they don’t have to file an eviction case. If you are personally on the lease (or sublease as it may be), they CAN go after you for any amounts owed.
You definitely should shut the shop down, I don’t see how it is benefitting anyone to keep it open. You need to notify any employees. And you should be talking to your attorney about this. He/she needs to know what you are doing.
While you do not have to legally file with your spouse, if you have joint debts that you want to discharge, it will be useless if he doesn’t file with you because he will still be liable whether or not you are.