Legal Question in Bankruptcy in California

My Business has failed and I need to be able to collect unemployment.

The EDD said I must disolve my California S-Corp first.

I also need to file for bankruptcy on my Business.

Should I file for Bankruptcy before I disolve the business?


Asked on 1/01/10, 9:14 pm

1 Answer from Attorneys
Brian Whitaker Lifeline Legal, LLP

Since Corporations do not receive Discharges in Chapter 7s, there is rarely any point for a Corporation (S or otherwise) to file Chapter 7. When you dissolve the business, there will be nothing there for creditors to go after; but you should file personal bankruptcy because you are probably personally liable for the debts. It doesn't really much matter whether you file before or after the business is officially dissolved.

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Answered on 1/09/10, 12:44 am


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