Legal Question in Bankruptcy in Michigan

Bankruptcy in Michigan; personal vs. corporate

You need to be advised and represented by an attorney with experience in bankruptcy. You need to file a bankruptcy petition on behalf of your corporation. The reason you formed a corporation was to isolate yourself, personally from liability, but be carefull because if you manage the corporation without following the law requisites the trustee in the bankruptcy or the creditors can try to pierce the corporate veil, and go after your personnal assets. If the proper corporate procedures have been follow; ie: corporate resolutions allowing the corporation to borrow from you (using the credit cards) and others; them you can claim the credit card debts in the bankruptcy procedure without damaging your credit. See state laws, and seek help from an attorney.

Bankruptcy - Personal debt incurred for insolvent corporation

You must consult an attorney to determine whether your particular circumstances will result in the credit card debts being discharged in bankruptcy. Generally, though, a personal debt incurred for a corporation remains a personal debt, and a bankruptcy discharge for the corporation will not eradicate the personal debt. Most credit card contracts indicate that the person to whom credit is beiing issued is personally responsible for the charges. Unless the credit provider agreed to hold the corporation solely liable for debts incurred on the account, then the person in whose name the credit was issued will continue to be responsible for thoses debts.