Startups Anonymous Est. 2013 · Read-only archive
Questions

Should I file bankruptcy?

I’m a startup founder who took on about $50k personal debt to get my company going. My company is making money but only convering operating expense. Haven’t paid myself a salary and savings are dwindling.

I figure in a year I can pay myself at least living expenses.

Will it hurt my chances of getting angel funding or VC money to have a bankruptcy on record?

Or could it be looked at as a Trump move to reorganize the debt. Remove the personal debt obligations which is causing me stress.

Anyhow company is incorporated and separated from personal. I could secure a loan under new company so used credit cards to fund it to cash flow positive.

3 answers from the community

AAnonymous· Oct 6, 2014

A business is an asset and that can be taken from you in a bankruptcy filing. If your aim is to scam the lender you should've bought a big home instead. Many states allow you to keep your nice home after filing for bankruptcy.

AAnonymous· Oct 6, 2014

Pay yourself a salary

AAnonymous· Oct 7, 2014

With all the structures you can put your business in to separate yourself from it for these very reasons (eg Trusts) I just don't understand why people hold shares in their own companies in their own name... Control, not ownership, is key.