Help - Chapter 13 and S-corp

[jenbow]

Hello.. I have been reading posts on this thread and on the other Small Business thread. I am new and trying to sort through all these questions that are coming into my head. My husband and I own a small business (s-corp) that is upside down. Just determined we owe $60,000 in payroll taxes (which is not eligible for bk, i know) plus we owe money on trucks, LOC, etc which is all personally guarenteed. Further, on a personal side, we have a 2nd for $100,000, an RV, 40,000 cc debt, 95,000 student loan, etc.

I know there is nooo way out other than Chapter 13 as I make over $80,000. My hisband has been getting a paycheck every week as well.

Do my questions are..

a) is it really feasible to claim BK on a personal note, and give the company CPR and see if it can revive? He is a small construction company that still gets business but due to poor decisions and bad luck, we are in a mess.

B) will the BK trustee always audit the business checking account.. some of our business expenses have been to take care of some of our personal expenses.. will this no longer be allowed?

C) the thought of being tied to the courts for 60 months.. scares me to death.

I know a lawyer can help with these questions but I want to understand what people experience in real life too. I am researching attorneys right now.

thanks everyone

[StartingOver08]

Question B first, don't worry about personal expenses being paid out of the business account in the past. The Trustee has seen it before, most business owners have paid personal expenses out of their business account at one time or another.

As stated here before, the business is really treated as your asset. Do you have a value established for the business? You have several choices with your business. Sounds like you have debt/liabilities that was/is incurred by the business but guaranteed by you. Does the business have any assets at all, or just liabilities?

[jenbow]

The business is just liablities.. except for tools and my husbands experience. Jeez.. this is so confusing I am just in a lot of fear right now. I am told to stop paying all my bills including my 2nd mortgage. Just scary stuff.