Is there any way to convert personal credit card debt into corporate
debt and protect your personal assets in case of a corporate
bankruptcy so long as you wholly own a private S corporation with a
large enough line of credit to allow the transfer of liablity and how
would one accomplish this in a legal transaction? The purpose is to
transfer the personal debt and have the corporation be the only entity
at risk. The answer must be detailed and executable and price is
negotiable. You may email me a guarantee that you can accomplish this to
negotiate a higher price.

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Clarification of Question by clint1111-ga on 07 May 2003 23:18 PDT

An answer of no is not sufficient for a charge. If your answer is no,
please ignore the question.

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Clarification of Question by clint1111-ga on 14 May 2003 00:24 PDT

The corporation is solvent and has excellent credit. This is ALL in
preparation. The debt has not yet been transferred, and it is being
carried on personal and business cards. So many transfers of debt have
taken place to get better floating APR's. I'm not opposed to bending
the rules, just dont want to blatently set up red flags.
Some of the debt was personal and some business. Probably 2/3 rds
personal. Credit card debt is piling up and I want to shift
responsibility to the corporation credit lines.
We are a virginia based S corp. The company has made only one sale so
far so gross receipts are $350.00 as we are new and emerging.
I have made business puchase on personal credit cards due to lack of
funds in the corporate account. Yes if I had handled this better the
picture would be clearer. But there is nothing physically stopping me
the ability to transfer all of the debt to the corporate credit lines.
I have every intent to repayy my debts as we have a bright outlook,
but I would rather the corp go bankrupt than personally go bankrupt
and have to rebuild. If I am overlooking anyhting please advise. Would
this be a question for my CPA to weigh the risk rather than my lawyer?
I dont even know any lawyers that would assist me at a reasonable
rate.

Thanks for your advice, and any suggestions.

First, let me point out that I am not a google researcher, but an
academic economist who reads through google from time to time out of
curiosity.

My non-professional opinion from reading whats on the net is that it
would depend on these things, among others:

(i) was the corporation solvent as a going business when the debt was
transferred?
(ii) were the debts actually debts of the corporation, i.e. for biz
purpose?

Basically, if your'e already in trouble, you are going to be in
bankruptcy court, and moving the debt around is going to raise
questions.  If you are not in trouble, but planning ahead, it is
probably ok, so long as a few years go by before the problems start.

This stuff gets hairy, and probably involves technical details of the
laws of where you live, and where the corp is located.  Get a real
lawyer; some lawyers will even answer simple questions for free if
they think they'll get more biz later.

For a balanced look at the phony garbarge some people sell in asset
protection plans and the meaning of 'fraudulent conveyance', take a
look through http://www.quatloos.com

The corporation is solvent and has excellent credit. This is ALL in
preparation. The debt has not yet been transferred, and it is being
carried on personal and business cards. So many transfers of debt have
taken place to get better floating APR's. I'm not opposed to bending
the rules, just dont want to blatently set up red flags.
Some of the debt was personal and some business. Probably 2/3 rds
personal. Credit card debt is piling up and I want to shift
responsibility to the corporation credit lines.
We are a virginia based S corp. The company has made only one sale so
far so gross receipts are $350.00 as we are new and emerging.
I have made business puchase on personal credit cards due to lack of
funds in the corporate account. Yes if I had handled this better the
picture would be clearer. But there is nothing physically stopping me
the ability to transfer all of the debt to the corporate credit lines.
I have every intent to repayy my debts as we have a bright outlook,
but I would rather the corp go bankrupt than personally go bankrupt
and have to rebuild. If I am overlooking anyhting please advise. Would
this be a question for my CPA to weigh the risk rather than my lawyer?
I dont even know any lawyers that would assist me at a reasonable
rate.
 
Thanks for your advice, and any suggestions.

Go to http://www.idm.cc

Give them a call as they are a reputable debt management company who
works with businesses in debt. They will talk with you for free about
your particular situation and let you know if and how they can help
you avoid bankruptcy. They work with personal as well as business
debt.