textbox not updating - Liquidating services
For instance, if you don't file for personal bankruptcy, you can choose to first pay the debts for which you are personally liable, such as: You might even be able to buy the business's assets back yourself—something you might want to do if you are planning to start up a new business after the liquidation.
If you are sued, you'll at least have to file a response in court pointing out that you aren't personally liable for the debt, and you may have to hire a lawyer or appear in court.
Worse, a creditor might even argue that your corporation or LLC was just a sham to help you defraud creditors and that it was really just you running the business (this is called trying to "pierce the veil" of the corporation or LLC).
She returns as much book inventory as possible to the publishers, lowering the amount she owes them to $40,000, and notifies them in writing that she's going out of business.
She then sells off her used book inventory as well as her bookshelves, cash registers, and computers (mostly to a competitor, the rest on craigslist), leaving her with $25,000 in cash.
By contrast, in a Chapter 7 business bankruptcy, the bankruptcy trustee (the person in charge of gathering and selling the assets) may not let the owners of a corporation or LLC purchase the company's assets (though this is standard procedure for sole proprietors in individual Chapter 7 bankruptcies).