I have a lot of debt and a pending law suit against my company.Company consists of wholesale and two retai outlets. Only one retail outlet is loosing money. The other two are still doing ok. How do I save a good ones, get rid of the bad one and erase company and personal debts? I need to figure out a least expensive solution to end it.
If there are no assets, there is no reason to file. It will only open the company up to scrutiny, as well the members. The company cannot get a discharge either.
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The company may not need to file bankruptcy as it cannot get a discharge, but chapter 7 is what you should pick if it is dissolving.
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It sounds to me like you are trying to save the wholesale operation and one of the retail operations--and just dump one. And it sounds like you have them all in the same corporation. (Which was not a good idea if you did it that way.)
In that case you probably need a Chapter 11 for the corporation. If you have personal liability on these debts, too--it sound like you do--then you'll need some kind of personal bankruptcy as well. Depending on your state exemptions, and what you own, and how valuable the good parts of the business are--there some chance you can do a personal Chapter7, but more likely a personal Chapter 13 or personal Chapter 11.
Somebody running three different businesses should have a business lawyer you use--who can steer you to a good bankruptcy lawyer in your area.
Unfortunately there is likely not one simple solution. You have both your debts and those of the company to deal with. This will likely require two separate bankruptcies. Either a chapter 7, 13, or 11 personal to you and if you want to restructure the existing company a chapter 11 for the LLC. Chapter 11 reorganizational bankruptcies are expensive.
There may be a simpler solution but it really depends on the amount of debt you have. Under limited circumstances it might be a good idea to let the LLC shell dissolve and merge the assets and liabilities to you personally. However, before you do anything, make sure you make an appointment with an attorney that is experienced in business and business related bankruptcies.