Legal Question in Bankruptcy in Delaware

S corporation

I have S corporation regestered in the state of Delaware. The sole asset owned by the company is one Cessna 414 airplane. The corporation has no income and is supported by personel funds from my retirement income. I owe 150,000.00 on the airplane through the corp. I no longer can afford to retain this asset in flying condition. It has under recient inspection been declared unairworthy due to a crack in a wing spar. I do not have funds to repair this if it is deemed repairable. What would happen to me if I declare this corperation bankrupt.


Asked on 6/10/03, 7:46 am

2 Answers from Attorneys
Bruce W. McCullough Bodell, Bove', Grace & Van Horn. P.C.

Re: S corporation

Assuming you have kept the S corporation active and legally separate from you personally, you could file a Chapter 7 bankruptcy and let the plane be taken or liquidated.

I handle bankruptcy cases in Delaware. Please feel free to contact me if you want to discuss possible representation and fees.

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Answered on 6/10/03, 9:00 am
Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: S corporation

S status refers primarily to taxation issues. You fail to state who is financially responsible for paymernt of the aircraft. Without knowing that it is difficult to provide a meaningful reply.

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Answered on 6/10/03, 2:41 pm


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