Legal Question in Bankruptcy in New York
Should I file for bankruptcy?
When I was running my newly formed S-Corp I paid the vendor with my personal checks. My last two checks bounced (total of $15000). I did not sign any written contract or personal guarantee on the credit extended to the company. Am I still personally liable for this debt? Should I file for bankruptcy on behalf of the corporation, myself or both? Can the NSF debt be considered non-dischargeable debt because of the bounced checks? Vendor wants to come after me personally do they have the grounds to make a claim against me personally because I wrote the checks in my name? Thank you.
1 Answer from Attorneys
Re: Should I file for bankruptcy?
You are personally liable on the $15,000 in bounced checks because you wrote them on your own personal account.
Bounced checks are usually dischargeable.
If the vendor is pursuing you personally, you may want to try to eliminate and discharge these debts through a Chapter 7 bankruptcy, assuming you qualify, in which case you could discharge most of your other debts.
For more information about bankruptcy, please see my bankruptcy blog: www.LongIslandBankruptcyblog.com
and my website:
www.BankruptcyCanHelp.com
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