Personal Bankruptcy Is Ch 7 right for my situation

[DriverMan]

Hello and thanks for having me on your board.

I need some simple advice to decide what to do with a sizable amount of debt associated with a company I dissolved.

I recently dissolved an Inc. in Ky that I sold off clients and liquidated assets to pay off debt accumulated through bad decisions, high interest and bad debt. I have a single line of credit left with a bank in the amount of 27000.00. This is a large sum for me to pay back if I were to do so.

The loan is in the name of my company, so it is not "personal" debt. It does NOT show up on my personal credit report (curiously). So my question is --

Could I consider a Ch 7 bankruptcy for the dead company to remove this loan? And, would it destroy me personally to do so??

Thanks so much for any help...

 

[army judge]

People incorporate so that company debts do not become personal debts.
If the company is insolvent, it should have no impact on your personal finances.
Why do you expect to see company related finances on YOUR credit report?
I don't understand why you think the debts of a company would ever be your personal debt.

 

[DriverMan]

Army -- exactly. IF I declared a business bankruptcy and don't have the loan personally guaranteed, can they still report this Biz CH 7 to MY personal credit.

Thanks a bunch for your input.

 

[diy4law]

If you are not incorporated the debt has to be secured by somebody. Maybe the debt hasn't shown up on your credit yet. Usually when you go to a bank, if you are a sole proprietor, the bank will ask you for your Social Security number. This makes you personally responsible for that debt. I would look for your contract with the bank and see who is the signer. If you are the signer they can come after you and get a judgment against you. In this situation I would say that chapter 7 will wipe this debt out.

 

[DriverMan]

If you are not incorporated the debt has to be secured by somebody. Maybe the debt hasn't shown up on your credit yet. Usually when you go to a bank, if you are a sole proprietor, the bank will ask you for your Social Security number. This makes you personally responsible for that debt. I would look for your contract with the bank and see who is the signer. If you are the signer they can come after you and get a judgment against you. In this situation I would say that chapter 7 will wipe this debt out.

Thanks for this -- I am exploring the site. The biz was incorporated as a S corp. The loan was secured with assetts but those were sold off to cover biz expenses, so the former company has no value at all.

Is this sounding like a cop out to get out of debt I should pay for myself? OR is this money that was loaned to a company entity valid to CH 7 it because it wasnt "my" loan...