Bankruptcy

Bankruptcy And The Loss Of A Business

By Douglas Jacobs, California Bankruptcy Attorney

When a business fails, the owners often find that they have to file bankruptcy.  If the business was a sole proprietorship or a partnership, the owners are personally liable for its debts.  And if it was a corporation or a limited liability company, the owners often had to guarantee loans or purchases, and therefore remain liable even after the business closes.

So, which do you do first: file bankruptcy or close the business? Generally it?s a good idea to resolve all of the issues of the business closure before you file a personal bankruptcy.

In that way, any creditors of the business can come forward and you will know exactly what is owed.  Then when you file a personal bankruptcy you can include all of those debts and hopefully have them all discharged.

A competent bankruptcy attorney can help you with both closing down your company and getting needed relief from the creditors.

Full post as published by Bankruptcy Law Network on February 13, 2010 (boomark / email).