How Will Personal Bankruptcy Affect My Business
My question involves bankruptcy in the state of: GA
We have a lot of credit card debts. lost our house in foreclosure. We are ready to file for ch. 7, but my wife is a partner in the salon - corporation S she owns 49%.
If we file for personal bankruptcy can creditors go after her business or try to force her to sell her shares? Salon is barely makes any money and it would hard sell it anyway.
Re: How Will Personal Bankruptcy Affect My Business
If you file for bankruptcy and you own shares in a business, those shares are an asset of your estate. Above any applicable exemption (e.g., the wildcard) your assets are subject to the claims of your creditors.
Re: How Will Personal Bankruptcy Affect My Business
Thank you. Hair salon is a service business - small inventory, no real assets, most of investment money came from developer and were used to build and finish salon and now with long term lease their liabilities exceed their assets.
My wife is concerned that trustee will force sale of the salon, it would hard to sell and recover any money these days, but mostly because she will loose her job as a lead stylist.
Do you think that he may do it anyway just to punish her, even there are no real assets in the salon? Thank you again for your advice
Re: How Will Personal Bankruptcy Affect My Business
Guessing what the trustee will or won't do is tricky. If you really want insight, you should talk to a local attorney who is familiar with the trustee. Most attorneys who specialize in the area of bankruptcy are familiar with the local trustees.