Can All Debts Be Discharged in Bankruptcy?

FAQ Personal and Corporate Bankruptcy

In bankruptcy, a discharge is a term used to describe a debt that doesn’t have to be repaid. But not all debts are dischargeable. Those that are include: business loans, unpaid rent and credit card expenses. Debts that cannot be discharged include: some taxes, salaries owed to employees, penalties and fines that have been imposed on the company by the government. It’s also important to note that personal expenses cannot be discharged in a business bankruptcy; only debts incurred on behalf of your company. More Questions about Bankruptcy? We have answers! Contact our bankruptcy team to discuss all options available …

Read more …

How Will Business Bankruptcy Affect Me?

bankruptcypetition

Whether or not you suffer personally from filing bankruptcy to protect your business depends on the chapter you file. If you file chapter 7, you (and the shareholders of your corporation) can lose your stock values if shares are liquidated with the corporation’s assets. If you file chapter 13, the shares of the corporation will be protected. Instead of liquidating, you’ll enter into an agreement to repay your creditors, and keep your business open during that time. Which bankruptcy is right for your business?  Chapter 13 bankruptcy is not an ideal solution for every business. If you have personally guaranteed …

Read more …

Case Study: Bankruptcy encourages settlement of lawsuit

Encourage the settlement of business lawsuits

For the past 5 years, Ken has been operating Convenient Car Care as a sole proprietor. He bought the business from Gary after working for him for 10 years. The purchase contract required Ken to pay Gary $1,000 per month plus 5% of the shop’s gross receipts for 7 years. Ken also agreed to provide accurate monthly sales records to justify the 5% he was paying Gary. The business’ gross receipts took a big hit when another repair shop opened around the corner. Ken fell behind on his payments to Gary, who became angry fearing that he could lose the …

Read more …