I find myself in a very difficult situation, I need some help! My business has cost me nearly 100k in debt, I spent all my savings and maxed out my credit cards to keep it alive, now I am stuck with the following:

$30k of business line of credit, personal guaranteed (in settlement by lawyer)

$41k of remaining merchant cash advance (I took $50k, pay back $69k, 11% hold back daily)

Credit cards here and there about $20k (still paying min payments)

I really want to get rid of all these debts, and run the company (ecommerce) under my wife or one of my family member's name. Since the ecommerce site generates 90% of the revenue for the business, and it has no relationship with the corporation (different name).

Should I file for bankruptcy? I am most concerned about the merchant cash advance "loan"

The company is a s-corp but everything was guaranteed personally.

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Originally Posted by mike2016

Should I file for bankruptcy? I am most concerned about the merchant cash advance "loan".... was guaranteed personally.

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Hello mike:

That, or pay it all back.

excon

Will the merchant cash advance be discharged under bk?

The trouble is if you started mixing personal money, personal credit and business money and credit. You may have destroyed the protection of a corporation from having your personal assets from being liable.

Also if your online is "completely" separate how so, a corporation to itself, all funds and property separate ?

At some point one has to go out of business and start over

I had no choice but to start using personal credit, I figure since Corp credit had to be personal guaranteed anyway.

My online business has a different name than the corporation and none of the lenders know it.

So I should be able start over under a different name and continue the business?
I have a domain of. Www.abc.com but my corporation is xxxxx development

Quote:

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Originally Posted by mike2016

Should I file for bankruptcy? I am most concerned about the merchant cash advance "loan"

The company is a s-corp but everything was guaranteed personally.

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Hello again, m:

I now don't know WHO you're talking about. YOU going bankrupt or your corporation?? My answer is YOU, YES - CORPORATION, NO. You asked further if the cash advance can be discharged in YOUR bankruptcy, the answer is YES.

excon

In this case, both the Corp and personal. Since everything are personal guaranteed. If I bk only the Corp, the lenders will start going after me right?

Hello m:

Yes, that's why you don't need to do both. If YOU declare bankruptcy and the corp lenders/creditors that can, DON'T jump on board, there won't be anything left for them get, either from the corporation, or from you. For those creditors who DON'T have a personal guarantee, that's just too bad for them. The corp doesn't need to go bankrupt. It just stops paying its bills and there ain't nothing those creditors can do. That's the risk they took when they granted the corporation credit and DIDN'T require a personal guarantee.

excon

The only creditors who did not require personal guarantee are suppliers, freight companies... But all the loans and especially merchant cash advance were personal guaranteed.

I want to stop paying the cash advance but I'm afraid the only choice I have is to go bk.