It is not generally understood, but the Bankruptcy Reform Act made a distinction between consumer vs. non-consumer (business) debt. While it generally made the discharge of consumer debt harder in bankruptcy, the new law actually relaxed the rules on discharge of non-consumer (business) debt. If your debt is “primarily” non-consumer debt, then you are relieved from the obligation to pass a means test which all consumer debtors are required to complete.
Corporations do not receive a discharge in bankruptcy, only individuals do. So, if you are a sole proprietorship, a bankruptcy will discharge your liabilities. If you are a corporation, you do not file bankruptcy, you simply dissolve. If you are a corporation with personal guarantees, you may need to dissolve the corporation and file personal bankruptcy. There are instances where a corporation should file a bankruptcy, ie, for orderly disposition of assets and maximization of credits towards debts.
Our office will be happy to help you dissolve a corporation if necessary and form a new corporation, represent you with regard to individual unresolved business debts, or help you collectively with all of your business debt.
