Denita Posted October 1, 2008 Report Share Posted October 1, 2008 I filed Ch 7 yesterday, personally. I am a S corp and most of my debt is personal/consumer debt (or more accurately business debt on consumer cc's). I have 2 business cc's - Advanta and Lowes. When this debt is discharged, don't I still have to pay on the debt through the corp? I asked the paralegal and she said not to pay while in bk, but to pay the business cards after the discharge. I am confused. If I still have to pay on these cards because they are corp cards, then why wouldn't I pay on them during the BK? Link to comment Share on other sites More sharing options...
bingo Posted October 1, 2008 Report Share Posted October 1, 2008 If you pay these accounts, it's likely you'll create a preference issue.If you choose to, you can repay after discharge.The personal liability is extinguished to you personally upon discharge. if the corp. is still operating then, these creditors can come after the business. Link to comment Share on other sites More sharing options...
Denita Posted October 2, 2008 Author Report Share Posted October 2, 2008 Thank you Bingo. The corp is still active and will be...it is a PA and that is how I am licensed. Commissions are paid directly to the PA - the trustee gets 100% of all contract receivables written prior to filing date. Anything written (sold) after the filing date does not go to the trustee...but I still can't pay the corp cc's because it looks like it is preferencial? Link to comment Share on other sites More sharing options...
bingo Posted October 2, 2008 Report Share Posted October 2, 2008 Payments of over $600 to a creditor witin 90 days of filing is preferential and the trustee has the authority to sue whomever you paid for the return of the funds.Guess it depends on how lucky you feel. Link to comment Share on other sites More sharing options...
Denita Posted October 2, 2008 Author Report Share Posted October 2, 2008 Thanks. I guess they will have to wait until after the discharge - I don't feel all that lucky! Link to comment Share on other sites More sharing options...
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