We are a S corp or a C (whichever one doesn't have the double taxation and makes the corp more like a LLC). My husband and I are both officers of the company. No other employees. Our only assets are 1 used mac and 1 used and really old PC. couple file cabinets, 2 chairs, 2 desks (course mine is personal and I bought it from a friend going out of business). Outdated software, a couple cheap printers and a couple cheap scanners. To conduct business we need phones, the mac, a pc, printer, and us. We are really the main assets of the company. We do printing and graphic design but the printing is farmed out to various vendors, some of which we are now behind on.
If we file bk on the company, we will also file personal, since many credit apps require the president to sign as a guarantor. Since we'd both be out of a job, the only way to make it would be to set up a brand new company with a brand new name and start over which we could only do if bk court let us keep the used mac and pc and at least one printer and our desks. Without that, we are screwed. Do you think they will let us keep that stuff?
Another concern is this, almost all our collecting money from customers is done through their credit cards. We have a merchant account with paypal (which sucks) and just set one up with our bank (BB&T) who handles our personal accounts (not much in them) and our company account (not much in there) and our second mortgage. From what I've read, before we file we should set up new personal accounts at a brand new bank and a new company account at a brand new bank. Because some threads say that if we have a loan at a bank that goes on the bk that the bank will close all our accounts and take any funds left in them. Would they close our merchant account too? If we set up a new company would they let us set the merchant account back up? Would a new bank let us set up a merchant account for our new company with a bk on us personal and the old company? Without a merchant account we won't make it in the new company.
Please advise.
If we file bk on the company, we will also file personal, since many credit apps require the president to sign as a guarantor. Since we'd both be out of a job, the only way to make it would be to set up a brand new company with a brand new name and start over which we could only do if bk court let us keep the used mac and pc and at least one printer and our desks. Without that, we are screwed. Do you think they will let us keep that stuff?
Another concern is this, almost all our collecting money from customers is done through their credit cards. We have a merchant account with paypal (which sucks) and just set one up with our bank (BB&T) who handles our personal accounts (not much in them) and our company account (not much in there) and our second mortgage. From what I've read, before we file we should set up new personal accounts at a brand new bank and a new company account at a brand new bank. Because some threads say that if we have a loan at a bank that goes on the bk that the bank will close all our accounts and take any funds left in them. Would they close our merchant account too? If we set up a new company would they let us set the merchant account back up? Would a new bank let us set up a merchant account for our new company with a bk on us personal and the old company? Without a merchant account we won't make it in the new company.
Please advise.
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