Legal Question in Business Law in New Jersey

Closing a Corporation or Claiming Bankruptcy

My partner and myself own a very small corporation which is no longer doing business. We have $4500 outstanding in accounts payable from approx. 6 different vendors. We also have $13,000 each in personal debt from the business that we understand is our responsiblity. My question is regarding that $4500. Should we just close the corporation or do we need to file for bankruptcy to elimate this debt. We signed no loan application or personal guarantees with these vendors. Some of the vendors we only owe $100 - 200. If we can just close the corporation do we need an attorney to do so.


Asked on 7/20/99, 2:50 pm

1 Answer from Attorneys
Robert Gleaner Robert A. Gleaner, P.C.

Re: Closing a Corporation or Claiming Bankruptcy

You can just close the doors and end the business without being responsible, personally, to pay any corporate bills. I am assuming that you did not personally guarantee those bills. Now, that is not necessarily going to stop possible law suits by the creditors who may try to go after you individually. If you do not defend those suits, judgments may be entered against you individually and you would then be required to pay. If you want me to discuss this with you further, please call my office at 856-546-8010. Good luck!

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Answered on 7/21/99, 5:04 pm


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