Personal AND Business 7?

[VaUnicorn]

What is the name of your state? Va

I have a question about a failed LLC. My husband and I were in business for ourselves - an LLC - for a little over four years. We were driven out of business and are now both working for other people again. We are being forced to file a personal chapter 7 in order to be able to pay current bills without further wage attachments (the end times of our business were quite pitiful).

The business has/had 2 bills left and I need to know, now that the LLC is cancelled, are those "personal" responsibilities? Since the business has dissolved, should I send some sort of letter to the two creditors stating that the business dissolved on X date? If the business was to file a chapter 7 based on the fact that it has dissolved, who would sign the paperwork of a cancelled LLC? We were listed as President (him) and Vice President (me) on the LLC papers. Having given up the PO box, the business doesn't even have an address anymore!

Last question: does the credit counselling (what a joke) have to be both parties in a married couple chapter 7? and you have to have the certificate from them with the original filing right?

 

[Ladynred]

does the credit counselling (what a joke) have to be both parties in a married couple chapter 7? and you have to have the certificate from them with the original filing right?

Yes, to both questions.

 

[GaAtty]

Your business should be filing the bankruptcy, if possible, if all the debts that you are concerned about are business debts. That makes a lot more sense than each of you filing a personal bankruptcy. Whether the two bills that are left are "personal" responsibilities is determined not by whether or not the business still exists, but on whether either of you personally guaranteed the debts. Did you sign a contract that had a personal guarantee in it? If so, then the creditors may come after you, but then again, they may not. It depends on the amount of money. These are all things that a bankruptcy attorney would know. You should consult one, rather than try to file yourself and file the wrong thing.

 

[VaUnicorn]

Thank you LadyInRed. I thought so, but needed confirmation.

GaAtty, you misunderstood. The business only has 2 bills - telephone and an office supply account. We are filing personal bankruptcy because we have personal debt from making almost nothing in the year 2004. In January of that year we had 75 clients and by December we had 3. And no, there was no personal guarantee anywhere on anything.