I thought I would respond to a post on these forums, since I just posted. It looks like you are talking about personal bankruptcy, not business bankruptcy? I will share a few stories which will help for each situation. First, my own story. I owed $25k in credit card debt and got over my head and could not make the minimum payments. I had just moved to CA and it was more expensive. Plus my car died so I had to buy a new one, on credit since I did not have savings. Basically all my accounts defaulted. And I also did not pay taxes for 7 years. I thought about bankruptcy, but decided it would not help. This was after my credit was destroyed. Basically I have learned to live on cash only and learned all about the business world, no longer being a major "consumer" living on credit like everyone else. I am just now settling my taxes with JK Harris for $5000. They do all the paperwork, stop the IRS from coming after you (if they are calling or harassing). They are now making an offer in compromise, so I am waiting to see how much that will be, but it will be significantly less than the $15-20k I owe. I am glad of the lessons I have learned, and the opportunity to make money as a business owner, and not buying a bunch of junk I don`t need. Story 2: My friend was $80,000 in debt but had $150,000 in available credit. He started writing credit card checks into his brokerage account and started trading stocks and made $100k that year and paid off all his debts. Personally, if I were you, I would find a way to restructure your debts and lower your monthly payments without ruining your credit. Credit counseling services will tarnish your credit. Take the available credit you have and try to increase it. Then use this extra credit to make money or grow your business. This is what large corporations do. They just keep moving, manage their debt, and increase their credit. Your taxes you can pay significantly less thru JK Harris or another firm ( I recommend them because they have been pleasant to deal with, reputable, and nationwide). Trust me, you don`t want to go thru the pain I have gone thru, and all the unforeseen pains you will encounter thru bankruptcy. There is a lesson in your situation somewhere- try to discover what it is.
Hi, I incorporated previously and did nothing with my corporation, including I did not file taxes. Eventually my corporation was shut down by the state of California. Now I am living in a different state and want to incorporate and start a business. What would you recommend I do to "clean up" my old corporation? Can I just file a cease and desist or something like that with the state of California. I don`t want to incorporate now and have this come back on me. Thanks in advance for your time.