Legal Question in Bankruptcy in Massachusetts

S-corp bankruptcy or Personal bk

my company is an S-corp and I need to disolve the business due to outstanding debt. Lawyer says may have to file 2 bk's, one for the corporation, one personal? How do I dertermine if I need to do this, and if the debt is personally gaurenteed? I signed everything as President of the company, does that matter?


Asked on 3/24/09, 8:54 pm

1 Answer from Attorneys
David Baker Law Office of David Baker

Re: S-corp bankruptcy or Personal bk

A corporation is a different "person" from an individual (human being), which is why there would be two bankruptcy cases. Unlike individuals, however, a corporation does not receive a "discharge" of debts. For that reason, there is no real point to filing a bankruptcy case for a corporation UNLESS the corporation has assets that could be used to pay creditors. For the individual, on the other hand, a bankruptcy case makes perfectly good sense because it should be possible to "discharge" the individual's liability for the corporation's debts. Visit my website for more information at www.bostonbankruptcy.org.

Best wishes,

David Baker

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Answered on 3/24/09, 10:16 pm


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