Results 1 to 4 of 4

Hybrid View

  1. #1
    Join Date
    Aug 2011
    Posts
    6

    Default 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.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default 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.

  3. #3
    Join Date
    Aug 2011
    Posts
    6

    Default 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

  4. #4

    Default 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.

    1. Sponsored Links
       

Similar Threads

  1. Business Finance: Personal Credit Used in Business. Business Closing. How to Settle Debts
    By buriedindebt in forum Business Law
    Replies: 1
    Last Post: 04-19-2011, 11:14 PM
  2. Business Issues: Lessee Filed Bankruptcy, How Does It Affect Personal Guarantee
    By doc750 in forum Business Law
    Replies: 3
    Last Post: 04-02-2011, 03:01 PM
  3. Business Finance: Personal Bankruptcy and Business Corp Dissolution
    By bizopen in forum Business Law
    Replies: 2
    Last Post: 09-26-2010, 01:31 PM
  4. Chapter 7: Effect of Personal Bankruptcy on a Business
    By avslifer69 in forum Bankruptcy Law
    Replies: 1
    Last Post: 01-31-2010, 07:52 AM
  5. Bankruptcy Issues: Keeping Personal and Business Assets After Bankruptcy
    By pokerfun in forum Bankruptcy Law
    Replies: 1
    Last Post: 01-08-2006, 08:17 AM
 
 
Sponsored Links

Legal Help, Information and Resources