Legal Question in Bankruptcy in Virginia

My company filed bankruptcy and owes me money.

My company, an internet start-up, just filed bankruptcy and really have no assets to speak of. I had placed $1007 in company charges on my personal credit card. They have been accumulating interest for over a month as I wait to hear if I'll be reimbursed. At this point, that looks highly doubtful.

Do I have any recourse? If I have to pay these charges with my own money, can I at least get some sort of tax break next year for business losses?


Asked on 5/22/00, 11:54 am

1 Answer from Attorneys
Barry Jorgensen The Law Office of Barry S. Jorgensen

Re: My company filed bankruptcy and owes me money.

You should be able to deduct the amounts on your personal credit card as a business bad debt, provided you make a claim in bankruptcy or file a civil suit if the company does not declare bankruptcy. You will need to substantiate that the funds put n your card were for legitimate expenseses directly related to the business and that you were not reimbursed. See your tax acountant.

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Answered on 7/05/00, 5:51 pm


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