Is it better to file Chapter 7 bankruptcy for a subS corp or to dissolve the corp without filing bankruptcy?
1 attorney answer
If creditors exist for the business and they think that there are assets, they may sue the company, even if you individually file bankruptcy. If you file you are not liable for most debts (beware of taxes, wages, etc.). I make this call for my clients on a case by case basis. In companies that had no assets which were financed by credit cards and the indiviual owner files Bankruptcy i tell my clients to dissolve. In the event there were lots of investors, and you think they may sue to determine what actually happened to the company or where there were lots of assets transferred to ccreditors then i would file the company in a 7 to have some closure.