limited compnay declaring bankruptcy

September 22nd, 2006 by Questions

I have a limited company which I’m considering filing for bankruptcy, but making the final decision, I would like to know the pros and cons with this move, espeically the consequences, thx

Questions

One Response to “limited compnay declaring bankruptcy”



September 23, 2006 at 2:05 pm, A licensed trustee said:

It almost never makes sense for the owner of an incorporated company to assign the company into bankruptcy. First, most trustees will require you to pay around $10,000 up front in order to start the process (a personal bankruptcy is much cheaper) due to all of the legal requirements. Second, one of the purposes of bankruptcy is to prevent the creditors from seizing assets; if the company has no assets, there is nothing to seize. Finally, as a director of a corporation you are personally liable for certain debts, such as certain government obligations; a corporate bankruptcy does not change that.
I suggest you contact a trustee or bankruptcy lawyer to review your options in more detail.

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