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Question
my business partner and i have just come out to each other that we want to go are own ways. we both would like to keep the s corp for are selves,the business has about $75,000.00 of debt and about $20,000.00 of assets. the other debt is unsecured and we both have are personal guaranty on that debt. what is the best way to split the debt without being liable for the other parties half. and i highly doubt my partner could get a $37,500.00 credit line.
Chad:
Thank you for your question. I regret that your business did not fare well, however at least you have accepted the direction you must go and intend to address your obligations. that said your creditors will have already separated your obligations based on who actually guaranteed it personally. If you both co-signed for each account, they will likely pursue you both initially, then if one is unable to pay, they would go after the other (or the one with the assets, job, etc.) Unfortunately, there is no way to assure your partner will pay his part of this, you should both make a plan, and contribute as equally as possible to paying it down. And lastly, before you do dissolve the corp, seek advise from professionals to assure you don't leave yourself further exposed by the loss of a corporate veil. One last thing, you can negotiate settlements with creditors or vendors if you have limited resources or can have a professional arbitration company do so on your behalf. I would be pleased to explain more about this option if you consider that in the near future.
Respectfully,
Christine Janklow
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| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | thanks for the advise my partner and i are going to try to get personal money and pay off as much as possible and go are separate ways thanks for the help | ||
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Answers by Expert:
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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