Personal Bankruptcy and Assets of Corporation
I formed a new corporation after losing my full-time job. The corporation is struggling but showing signs of growth. We have multiple credit cards which total over $100,000 in debt due to 3 sole proprietorships which also went bankrupt 9 years ago. This made us personally liable for the debt which we were able to keep current at over $2,000/month. After losing my job and unemployment with no job in sight yet, we are now facing judgments and being forced in bankruptcy. How will this affect my corporation and printing equipment it uses that is just now landing some good contracts?
1 Answer from Attorneys
Re: Personal Bankruptcy and Assets of Corporation
The stock you own in your corporation is an asset of your estate and the trustee will be able to liquidate it to pay your creditors. He may sell it back to you at a percentage of its value. Rather than a Ch. 7 liquidation, a Ch 11 reorganzation may be preferable, but more expensive. You need to consult an attorney to explain your complete situation, for a complete evaluation of your case.
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