Legal Question in Bankruptcy in North Carolina

You should consult a bankruptcy lawyer. You will not get any individual credit reporting because of the corporate bankruptcy. The C status is only a reporting election for income to the IRS. You may be a personal guarantor of corporate debt. As such, you may be the subject of collection activities once the creditors see that the corporation has filed. If the corporation will file a Chapter 11, then the officers can get protection, but the creditors who have the personal guarantee must be satisfied in full or you will still, later be subject to collection activities. The same is true with Chapter 7. In both cases also, certain state tax liabilities flow through to the officers and all federal tax liabilities flow through. There are ways to structure corporate and personal bankruptcies to navigate the various exposures to result in a fresh start personally.