personal question

[shelly24fan]

What is the name of your state? ohio

ok i have a question, does anyone know if you can file bankrupt against your personal debt but still keep your business out of the whole thing?

[izzie]

My daughter and her husband are filing. Their lawyer told them.they would have
to do a chapter 13. This is in N.C.

[Ladynred]

That depends. How is your business organized ? Is it an LLC, is it incorporated ? Are you PERSONALLY liable for the business debts ??

[shelly24fan]

ohio

the business is stricly in my name, so im responsible for all debt as far as the business goes, but im just looking to file bankrupt on just my personal credit, not anything affecting the business???

does that make sense?

[ALC]

Originally Posted by shelly24fan

ohio

the business is stricly in my name, so im responsible for all debt as far as the business goes, but im just looking to file bankrupt on just my personal credit, not anything affecting the business???

does that make sense?

Shelly24fan,

If your business is structruced as a sole proprietorship then any business assets becomes property of the bankrutcy estate even if you file for debts not related to the business. For example, I have a tanning salon I opened five months ago. Business is slow and I have gotten myself in a lot of personal debt. My business is structured as a sole proprietorship. If I file for chapter 7 for my personal debt all assets in my tanning salon, i.e, tanning beds, becomes property of the BK estate. This means that I will have turn over the equipment to satisfy my personal debts. However, if my business was incorporated, i.e, S Corp. then all business assests would be protected. Hope this helps.

[shelly24fan]

ohio

thank you that helped alot, we have a computer store so i take it all of the equipment, computers, would become property of the estate even if we file chapter 7?? is that correct?

[ALC]

Originally Posted by shelly24fan

ohio

thank you that helped alot, we have a computer store so i take it all of the equipment, computers, would become property of the estate even if we file chapter 7?? is that correct?

Yes, the trustee is entitled to all non-exempt assets. The trustee is also entitled to money in your business bank accounts. Perhaps you could talk to a lawyer about incorporating your business before filing. If your business is incorporated business assets, including money in your business bank accounts, are protected in personal bk.

[AttorneyOney]

Originally Posted by ALC

Perhaps you could talk to a lawyer about incorporating your business before filing. If your business is incorporated business assets, including money in your business bank accounts, are protected in personal bk.

The stock in the corporation would be an asset of the estate that the trustee would take charge of. The trustee could then liquidate the corporation.