Go Back   The Finance Forums > Finance forums > Debt



Debt Discussions about debt and how to deal with debt.

Reply
 
Thread Tools
  #1  
Old 06-03-2011, 01:19 PM
calicorp calicorp is offline
Junior Member
 
Join Date: Jun 2011
Posts: 3
Default Corp vs. Personal BR

Hi, I have an S corp in California; I am the sole stockholder, and pay myself less than minimum wage. There were two main bank creditors of about $50k each, which were in my personal (not corp) name. In summer of 2010 I filed for a personal bankruptcy, using an attorney, which received its discharge last month (May 2011). I also sold my car (use a bicycle), sleep in the office, and got 3 sub-lease people to help pay the rent. If I were to have been paying myself a reasonable amount, there would be no money in the corp account at all; and if I started paying myself now, the corp account would be gone in a month or two. The bankruptcy idea was that since I funded the corp using my two personal bank credit sources, a personal bankruptcy would elimiate the debt so I could afterwards close the corp and re-form the business in my personal name. However, one of the creditors has a UCC that says they own everything in the corp, which is about $2,500 in furniture and old computers. So now my attorney says they may be able to sue or obtain the corp money (about $35k) that has been put into the bank since then. Our sales have just about stopped, so the $35k is needed to just keep the office open. Question: What options do you see? Thanks, Tim
Reply With Quote

Old Sponsors
  #2  
Old 08-03-2011, 03:34 AM
Fredy Atwater Fredy Atwater is offline
The Finance Forums
 
Join Date: Aug 2011
Posts: 516
Exclamation Re: Corp vs. Personal BR

Hi Tim :

I admire your desire to own your corporation at any cost. It sounds like your'e isolated and without money.

Why are you doing this to yourself ?

You've got to survive first . Do whatever it takes. Don't beat your self down. You can handle complexity. Maybe you need to simplify your business.

Organize yourself . If you have to declare bankruptcy it will not be the end of you. Once you start making income your credit score will bounce back. Don't let fear mug you. I admire your desire to be a corporate man.

Move on Timmy
Reply With Quote

  #3  
Old 08-03-2011, 10:42 AM
calicorp calicorp is offline
Junior Member
 
Join Date: Jun 2011
Posts: 3
Default Re: Corp vs. Personal BR

Well what we've done since then is to start paying me a salary, and start making payments to the one creditor that had a UCC. This will deplete the corp bank account by the end of the year. Also, I'll be buying back the desks, computers, etc, from the corp to me personally. And I already pay the rent and utilities personally. Then my corp attorney will dissolve the corp, and I'll just continue on personally.
Reply With Quote

Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



» Boards




All times are GMT -4. The time now is 01:33 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.