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Chapter 7 and General Partnership...

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giulveza

Junior Member
What is the name of your state? California

A friend and I formed a General Partnership after being laid-off about 1-1/2 years ago, and things haven’t been going so well.

My income level is under $20k/year and has been since forming the company. I have been unable to keep up with my personal credit card bills and they’ve fallen months behind and my biggest creditor is in the process of suing me. I am planning on filing Chapter 7 bankruptcy.

In case it matters, the company has no debt.

Before I file, I hope to protect my business partner and his assets from being effected by my bankruptcy.

In our partnership agreement, we have provisions for one partner to buy out the other and for the business to continue on without that individual. I’ve briefly discussed this with my business partner and he is agreeable to buying me out and ending the partnership, and then I suppose I’d simply become an independent contractor as jobs come-up.

Do you think that this is our best option, or do you have any other advice and ideas?

Thanks in advance,

Dan
 



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