I owe $70,000 to five credit cards (all personally guaranteed) plus a business loan (also with a personal guarantee), about $12,000 each.
For the past five years I've been juggling and dodging to make the bottom line come out black. Last week I got the news that a major client isn't renewing their contract, so that's the end of the line for me. I'm exhausted and am ready to file personal Chapter 7.
I'm the sole shareholder of two corporations: one's a C-corp and one's an LLC taxed as a corporation. The LLC is the one with clients and has been paying my salary and health insurance; it has no assets. It has one credit card with me as co-guarantor. The Corp has $1,000 in inventory but no income; it has 3 credit cards and one business loan with me as co-guarantor. I ended up using the cards and loan for personal, not business expenses and currently pay them all out of my personal bank account, so they're not business debt.
Oh, and the LLC is in an installment plan to the IRS for back 941 withholding. Yes, I know. What a freaking mess.
I'm pretty sure I'll have to liquidate both corps eventually to keep the creditors from filing suit against them. I was just wondering if I have to do it before I file the Chapter 7. I have a lot on my plate right now, and the prospect of shutting down two business entities on top of everything else is pretty overwhelming. I especially don't want to renegotiate with the IRS right now. The LLC will make enough money to pay on the installment plan for a while yet.
Is this something a regular consumer bankrutpcy attorney can handle, or should I go with a business attorney even though I won't be putting the businesses through BK?
Thanks to anyone who can help. There are some amazingly knowledgable and generous people on this forum. Glad I found you.
For the past five years I've been juggling and dodging to make the bottom line come out black. Last week I got the news that a major client isn't renewing their contract, so that's the end of the line for me. I'm exhausted and am ready to file personal Chapter 7.
I'm the sole shareholder of two corporations: one's a C-corp and one's an LLC taxed as a corporation. The LLC is the one with clients and has been paying my salary and health insurance; it has no assets. It has one credit card with me as co-guarantor. The Corp has $1,000 in inventory but no income; it has 3 credit cards and one business loan with me as co-guarantor. I ended up using the cards and loan for personal, not business expenses and currently pay them all out of my personal bank account, so they're not business debt.
Oh, and the LLC is in an installment plan to the IRS for back 941 withholding. Yes, I know. What a freaking mess.
I'm pretty sure I'll have to liquidate both corps eventually to keep the creditors from filing suit against them. I was just wondering if I have to do it before I file the Chapter 7. I have a lot on my plate right now, and the prospect of shutting down two business entities on top of everything else is pretty overwhelming. I especially don't want to renegotiate with the IRS right now. The LLC will make enough money to pay on the installment plan for a while yet.
Is this something a regular consumer bankrutpcy attorney can handle, or should I go with a business attorney even though I won't be putting the businesses through BK?
Thanks to anyone who can help. There are some amazingly knowledgable and generous people on this forum. Glad I found you.
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