Any Advice?

[david2]

Well, I met with my third attorney today after the one I thought I was going to use has not returned my calls for two weeks, and noI haven't been bothering him to much as we have had two meetings and two phone calls in 7 months.
Old attorney said I needed to file 7 on both business which I have 90% ownership in one and 50% in the other and also file 7 personally. The attorney today says I need to only file personal and let the business die, then if someone sues later file the business then as the personal chapter 7 would include the personal guarantees
Thank you for your replies

[forgotten]

Well, I met with my third attorney today after the one I thought I was going to use has not returned my calls for two weeks, and noI haven't been bothering him to much as we have had two meetings and two phone calls in 7 months.
Old attorney said I needed to file 7 on both business which I have 90% ownership in one and 50% in the other and also file 7 personally. The attorney today says I need to only file personal and let the business die, then if someone sues later file the business then as the personal chapter 7 would include the personal guarantees
Thank you for your replies

There really isn't any reason to file a Chapter 7 on a business if you are going to file personally. As the attorney said, your personal liability is going to be discharged.

[Dst1]

There really isn't any reason to file a Chapter 7 on a business if you are going to file personally. As the attorney said, your personal liability is going to be discharged.

The personal guarantees on any credit cards would be discharged. However, if the liability is to either the state or federal tax man then that would not be discharged and the IRS could came after one personally for the business liability. You would then have to file a business BK at significantly more expense.

There are certain items for which one can be held personally liable that can be discharged in business BK that cannot be discharged in a personal BK. While it is true that in many cases this is not an issue in some cases it is.

My own personal belief is that it is better to close up shop the proper way. It could save much grief later on. It's much cheaper to file now as one big package then to come back and file again later.

I'm not saying that the advice to just let the business die is wrong. Just that the OP should think carefully about that decision because it is not always the best course of action in the long run.

[forgotten]

The personal guarantees on any credit cards would be discharged. However, if the liability is to either the state or federal tax man then that would not be discharged and the IRS could came after one personally for the business liability. You would then have to file a business BK at significantly more expense.

There are certain items for which one can be held personally liable that can be discharged in business BK that cannot be discharged in a personal BK. While it is true that in many cases this is not an issue in some cases it is.

My own personal belief is that it is better to close up shop the proper way. It could save much grief later on. It's much cheaper to file now as one big package then to come back and file again later.

I'm not saying that the advice to just let the business die is wrong. Just that the OP should think carefully about that decision because it is not always the best course of action in the long run.

Corporate officers are not responsible for the taxes of the business EXCEPT the employee portion of taxes which you withheld from paychecks and in many states sales tax. For a pass through entity tax liability becomes yours either way by the pure nature of it being a pass through entity.

Can you clarify what items one can be personally held liable for that can be discharged in a business BK but not a personal one?

[MrBankruptcy]

I agree with forgotten, if you are filing Chapter 7 bankruptcy on your personal debt and the business is dead there is no reason to file on both. Any of the debt that your business cause you personally is dischargeable in a Chapter 7. If you have no liability to any employees it's pretty cut and dry.