Bankruptcy Question

[lewisd]

What is the name of your state (only U.S. law)? Missouri

Hello,
I am married and I own a small business which is set up as an LLC. The LLC is in my name only. The only thing my husband's name is on, is the commercial lease in which we both signed a personal guarantee. My business is not doing very well at the current time. I do have the opportunity to sell the business and hopefully transfer the lease to the buyer, but the buyer does not have cash to pay for the business and wants me to owner finance. My problem is that I will still have lots of credit card debt that I would not be able to repay. Can I file bankruptcy on the business credit card debt that is in my name only? Also if I can and do file bankruptcy, would I still be able to collect the money from the sale of the business?

 

[HomeGuru]

What is the name of your state (only U.S. law)? Missouri

Hello,
I am married and I own a small business which is set up as an LLC. The LLC is in my name only. The only thing my husband's name is on, is the commercial lease in which we both signed a personal guarantee. My business is not doing very well at the current time. I do have the opportunity to sell the business and hopefully transfer the lease to the buyer, but the buyer does not have cash to pay for the business and wants me to owner finance. My problem is that I will still have lots of credit card debt that I would not be able to repay. Can I file bankruptcy on the business credit card debt that is in my name only? Also if I can and do file bankruptcy, would I still be able to collect the money from the sale of the business?

**A: it appears you may have to file two separate BK petitions; LLC and as individuals jointly.

 

[lewisd]

Is there a way that only I could file and not my husband? We do not want to file on any of our personal debt. I just want to file on the debt that I obtained from the business.

 

[HomeGuru]

Is there a way that only I could file and not my husband? We do not want to file on any of our personal debt. I just want to file on the debt that I obtained from the business.

**A: you should seek counsel from a BK attorney since we do not have all the facts.

 

[lewisd]

Thank you. I am planning to see an attorney in the next few days. I was just trying to get an idea if it was even possible for me only to file BK.

 

[HomeGuru]

Thank you. I am planning to see an attorney in the next few days. I was just trying to get an idea if it was even possible for me only to file BK.

**A: yes but since your husband also guaranteed the lease, he would still be on the hook.

 

[diy4law]

If you file chapter 7 bankruptcy on the LLC you have dissolve the company. If the credit card is in your name personally you can file individually if you don't want your husband involved. If you file chapter 7 on the LLC all assets including the sale of the business would go to pay all creditors including your credit card.