Use Bankruptcy To Get Rid Of Business Debts

If you own a corporation or LLC, it is very likely that you need bankruptcy to get rid of debts incurred by your company that your company cannot afford to pay.  Why?  Because you are almost certainly also personally liable for those debts.

One of the main advantages of owning your business as a corporation or LLC is that you are not generally liable for the debts of the company.  But banks don’t know or trust small companies enough to lend them money without also making the owners also personally liable for those loans.  So when you sign as a co-debtor or a guarantor for the company’s loan, you are equally liable for it.

If your corporation or LLC goes out of business, there is no one from whom a creditor can collect the debt.  However, if you cannot afford to pay those business debts and you are personally liable for them, you should strongly consider filing bankruptcy to get rid of those debts and get a fresh financial start.

If you have business debts for which you are also personally liable and which you cannot pay, contact a bankruptcy attorney today.  Don’t let a failed company become a zombie company by continuing to haunt you with its debts!