Filing for CHapter 7 as a Corporation Owner

Do you own a corporation but want to file for personal bankruptcy?

If you are a stockholder in a corporation and are considering filing for personal bankruptcy, this will not affect your relationship with the corporation. However, your shares in the bankruptcy are considered an asset and could be taken as part of your bankruptcy estate. A court will determine the current value of your shares based on: the current marketability of your shares, the percentage interest they represent and the total value of the corporation's assets.

In addition, a corporate or business bankruptcy should not affect the shareholders directly. If the corporation files for a Chapter 7 bankruptcy, the stockholders will generally not be notified of the filing as they wouldn't be expected to receive anything from it. However, if funds are left over after the bankruptcy has been discharged, you can file for your share of any debts that are in your name.

Considering Chapter 7?  Now is the time to contact us to get help from a Chicago bankruptcy attorney.