Q: Small C-corp is bankrupt. Owes <$25k in credit card debt. What are the options for settling the debt?

A: A corporate entity's authority to file a voluntary bankruptcy case may be tested, e.g., the recent NRA filing. Normally, it suffices to file a duly executed corporate resolution showing action by the board of directors, and yes, a corporate officer must appear for at least the 341 meeting (you don't say whether the Corp will file a Ch. 7 or 11).

A bankrupt individual or corporate/other legal entity is not required by the bankruptcy code to telegraph its intent to seek bankruptcy relief, but if a business entity is above certain size levels, or "publicly held, Securities laws may require such reporting to either the Feds or State or both. And many states have laws requiring a business to give, e.g., sixty days prior notice to employees and others of intent to cease operations. I am not aware of any such laws that require prior notice to a credit card issuer, although it may be prudent to do so to avoid needless litigation.

A: (follow up) You should note that a corporation is not eligible for the grant of a Discharge in bankruptcy. Usually, it is advisable to file articles of dissolution with the state of incorporation (or of domestication) following a bankruptcy filing.

If any individual principals of the corporation are guarantors on the outstanding debt, and the corporation files for Ch.7 relief, the guarantor will remain liable on that obligation.