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#1
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business/consumer debtsi recently filed chapter 13 in nevada. i want to know if unsecured business debt can be classified in such a way that those debts are paid off 100% in the plan? these debts were from a former sub s corporation, which is no longer existent since 2000. all of these debts were listed on the petition as unsecured consumer debt along with credit cards, etc. due to the business beint no longer operating. because of this, my former partner is being pursued for remaining portion of the debt not paid by my plan which pays 21%. can the paperwork be amended to do this? the former corp was in minnesota. i'm receiving two different theories on this matter from my attorney and my partners. ![]() |
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#2
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| If you and your partner are somehow personally liable for the debts of the S corp, then you are only liable for your portion and that is what you can discharge in bankruptcy. Here is where it gets a bit technical: if you are jointly and severally liable with your partner, then the creditor has a right to reimbursement from either or both of you, up to the amount of the debt. However, if the creditor would sue you alone, you would have a right of reimbursement from your partner for the partner’s share. Likewise your partner would have a right of reimbursement from you in similar circumstances, and so each of you would end up ultimately liable for your own share. |
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