Business Debt/DISOLVING AN S-CORP

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Expert: - 6/17/2008


Question
We are a S corp of more than 15 years and the past 3 years poor
management of the company has left the company insolvant. Our expenses
to income ratio make even scheduled debt payments impossible given some
vendors are demanding payment in full. although we have reached out to
many kind suppliers and received support backing up a payment schedule I
don't believe we can turn it around with some vendors calling for 'full
payment'.  there are not enough assets to liquidate for total creditor
satisfaction.  Q:  Are our personal assets protected by the S-Corp?  After sale
of corp. assest will the debt be eliminated or will we be responsible?

Answer
John:
Thank you for your inquiry. Based on the information you have provided, it seems most of the debt you have is to vendors/suppliers. I am not sure if you signed a promissory note, or personal guarantee for your purchases. It would be difficult to determine risks to your personal assets. Banks, vendors and the like, can pursue collections of personal assets if there is a guarantor, but if dissolution is inevitable than you would be better off seeking the advice of an attorney who can help minimize your exposure in doing so. If you don't have such counsel, you may find someone versed in corporate bankruptcy, or debtor creditor laws by visiting www.findlaw.com  Lastly, if any of the debt does end up being your responsibility, you can engage a commercial debt negotiator to reduce the amounts owed and settle the accounts. I wish you the best.

Respectfully,

Christine Janklow

Business Debt

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Christine Janklow

Expertise

As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.

Experience

My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.

Organizations
Provisors;Turnaround Management Association; Los Angeles area

Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."

Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising

Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.

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