Bankruptcy and Personal guarantor

[lastjoy]

What is the name of your state? Georgia

What happens to a person who acts as a personal guarantor to secure loans for a business? We started a business with some friends who left us holding the bag on everything. (One of them even owes us money for helping them pay off a debt.) How does this affect us if we file bankruptcy? Will any of the debtors try to come after us personally for anything dealing with the business? Will this affect our personal credit? And we may have to move because we probably could not afford to maintain our residence. Can they come after any monies from the sale of our house?

 

[JustAPal00]

If your business files bankruptcy, then anyone who personally guaranteed any loans will become personally liable! They will be able to go after your personal assets! How much business dept did you guarantee? Is there any way you can use home equity to pay it off and then pay the home equity loan which is tax deductable?

 

[lastjoy]

I don't really know what the exact amount is? It is very possible to sell or even return the tractor trailers, but I'm not sure if the actual purchase price would be recouped. If he filed personal bankruptcy at the same time as a business bankruptcy, how would that affect credit cards, mortgage, or anything that I was an authorized user on? Would anyone be able to come after me? We are engaged but not married and I didn't cosign for anything with him. This is causing alot of distress as we would have to move back to another state in order to secure employment asap and try to live. How soon can a bankruptcy begin and how much time would we have to try to liquidate any assets? I know that I am asking a lot of questions, but I am not sure of the future to come having to raise 3 children. The house that we live in already has a home equity loan on it that was used to start up this failed business, so that is an option that we cannot address right now.

 

[moburkes]

You need to contact a local BK attorney since 2 BKs will be involved. No they will not come after you.

 

[JustAPal00]

Make sure and keep seperate credit until this all is over!!!!! Do not put him on your credit, or be added to his!

 

[lastjoy]

Business Bankruptcy

I am already on a few of his personal accounts. Would we have to sell our home to repay some of this debt. I am not listed on the deed. And he has had to another state to get a job to take care of our personal bills. So could I try to "liquidate" some of the equipment to repay some of the debt and can I try to work something out with the other creditors to repay them as well. How does this affect our ability to close this business and not lose too much our sanity with it? I am basically trying to keep this afloat to pay off some of the debt and get it ready to sell/close and do something else.