Handling of Shareholder`s Loans when Shareholder Files Personal Bankruptcy
April 29th, 2008 by Questions
I ran into financial difficulties and I am considering filing bankruptcy. I own 50% of the shares of a LTD company, and I have loaned $50,000 to the company a year ago. I know once I file personal bankruptcy, the trustee will demand the company to repay the $50,000 because that is my asset, and the money will go to the trustee. Since I own 50% of the company, that means I have to be responsible for 50% of the loan. However, I am already bankrupt, how could I repay 50% of the loan? I don`t understand how that works? Could you provide me with some advice?