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Filed personal BK 7 yesterday, can I pay business acccts?


Denita
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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?

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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.

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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?

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