Legal Question in Bankruptcy in Illinois

Re: S Corp Bankruptcy

Thank you for your question. To be sure, the corporation itself along with its assets is being sold? or is it just the assets? The main issue will be who the guarantor of the credit card account is? In the eyes of the credit card company, that individual will be liable. The second issue would be to look at the agreements governing the sale of the business. The buyers should be assuming those debts.

You mentioned that the buyers will be filing bankruptcy. That is somewhat curious. The bankruptcy code contains many subtleties, one of which deals with transfers of funds in and out of a business within 90/180 days of the filing of bankruptcy. That, in theory, could effect your family.

I would be happy to answer your question in further detail if you are able to provide more information. Please feel free to contact me directly if you prefer to, at [email protected]