Legal Question in Bankruptcy in Nevada

S-corp & bankruptcy

my husband & I formed as S-corp to start our small busines-we are struggling financially, and we are considering closing our business and declaring BK-we have a lease (that we had to personally guarantee) on a truck-if we turn in the truck, declare BK and close our business, will our personal credit be affected?


Asked on 5/27/08, 12:51 pm

2 Answers from Attorneys
James Smith James E. Smith Ltd.

Re: S-corp & bankruptcy

If you signed a personal guarantee your personal credit will be affected by a repossession.

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Answered on 5/27/08, 5:25 pm
Jeffrey Cogan Jeffrey A. Cogan, Esq., Ltd.

Re: S-corp & bankruptcy

You may want to return the truck and see how much of a deficiency is. If you can work out a deal to pay the deficiency, make sure that they will not report a negative. Your personal guarantee leaves you liable.

If you have any more questions, please email and I will get back to you.

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Answered on 5/27/08, 5:51 pm


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