Personal Bankruptcy Is an unsecured business loan dischargeable in a no-asset chapter 7 bankrutpcy?

[cj2020]

I made an unsecured business loan to an individual. This person is now filing a no-asset chapter 7 bankruptcy. Will the business loan be considered dischargeable, or can I dispute it since it was not a personal loan.

 

[sfitz]

Sole-proprietor businesses have their assets and liabilities tied together with the individual, so I would say the loan is not exempt from chp 7. If the person has a separate account for the business, however, you can discover whether there are any assets in that account during proceedings.

 

[sarasotalaw]

What's the business worth?

 

[Hideoutcabins]

In chapter 7, all debts combined personal & business are discharged. This is not selective bankruptcy. However, the filing party may elect to execute reaffirmation agreements.