hello,
We have a small S Corp with no employees. We did subcontract work for an out of state company. The company filed bankruptcy and now the trustee wants to avoid all of the payments made earlier. This totals around $100k. We are still owed $80K by the company. The trustee has filed suit against us for the $100K but we can't pay it or pay for legal counsel to pursue. If we dissolve the business, can the trustee still try to collect?

You may dissolve the corporation, but you would still need to disburse any assets to creditors, including anyone with a potential judgment. In addition, if you distributed dividends to both of you, you might be liable for those amounts if all creditors were not satisfied. Other than that, the trustee would be out of luck after dissolution.