Business Bankruptcy Or Just Close Up Shop?

[anthonyj123]

Jurisdiction

Pennsylvania

I have a small remodeling business in PA. Started it just over a year ago. One of my contractors signed me into a deal that was not profitable. I'm stuck in a position where I must walk off the job. Currently I've lost $2000 on this addition and it's still a good 4-6 weeks from being completed. The remaining money in the job won't even cover it's completion... First time this has happened and it was due to one of my contractor's faults. He is the one who signed the contract.

My company is an LLC so I believe that just closing the doors might be sufficient to avoid getting sued. I also have about 20,000 in debt, 6,000 of which is personally guaranteed. Assets in equipment worth about $2,000.

Wondering what my best options are...
Bankruptcy
or Close Shop?
or any other suggestions would be welcomed...

Some important notes:
I registered the company as an LLC however I searched for my business documents and I only see a fictitious name filed...
I don't see any articles of incorporation, which may mean that my LLC status may not be complete??

Would appreciate any insight on my situation. I am in a pretty bad position due to the promise made by one of my contractors.

 

[adjusterjack]

Same answers as you got on the other site.

 

[anthonyj123]

Same answers as you got on the other site.

Do you have any suggestions or advice on the situation for me or is the best idea to file for personal bankruptcy. Keep in mind I do have joint ownership on a piece of property with my dad. I do not want him to have to feel the effects of my own stupidity

 

[adjusterjack]

The property may be in issue with bankruptcy. Worst case scenario you'll have to sell it to pay down your debts. Best case scenario it's exempt. And there are many variables in between.

Best thing for you to do is sit down with a bankruptcy attorney and review your options.

 

[zddoodah]

One of my contractors signed me into a deal that was not profitable. . . . it was due to one of my contractor's faults. He is the one who signed the contract.

I'm not exactly sure what you mean by "one of my contractors," but why would you give anyone else authority to bind you to a contract?

Wondering what my best options are...
Bankruptcy
or Close Shop?
or any other suggestions would be welcomed...

. . .

Would appreciate any insight on my situation.

No one on an internet message board, who knows next to nothing about you or your LLC will be able to provide you with intelligent, reliable insight. I suggest you consult with a local attorney.

is the best idea to file for personal bankruptcy. Keep in mind I do have joint ownership on a piece of property with my dad. I do not want him to have to feel the effects of my own stupidity

If the party that entered into the contract is an LLC, why would you consider a personal BK?