Personal Bankruptcy Personal Bankruptcy - Starting New LLC

[troubled84]

I am completely overwhelmed in personal debt, to the tune of about 20k, mostly credit cards. My business partner and I have had a small business that we are looking to expand in the next few months. He is concerned about the liability of having me on the business with so much personal debt, as well as being able to get any finance. I don't what to do.

If I file a personal chpt. 7, what's the likelyhood that I will be able to be on any business documents? He tells me to wait until I'm forced to file, i.e. someone sues me. But that could be 1-2-3 years down the road, if at all. I think that I should file and get it over with that way I will be on the way to start repairing my credit, versus waiting to file when, and if, someone sues me.

Thoughts?

 

[Theresagail]

If you have a LLC your personal debts have no effect on it. Weather to file Bk now or later is completely up to you, you may not even qualify to file a chapter 7, you need to pass a means test and do credit counseling etc.. Talking to a bk attny will inform you of what to do and when.

 

[Hideoutcabins]

Your business partner is somewhat correct. If you can't pay your bills, don't worry until your sued. Also, your debts or your portion of the business debts can be discharged in your personal filing. Additionally, if you pass the means test, you can probably keep about $9,000 in cash, several thousand in assets as well as your vehicle and home if you so choose to reaffirm. Generally, there is an unexpected life changing event that leads to chapter 7. Don't feel guilty about that. Happy to answer any additional questions regarding meeting of creditors, trustee assigned or what to expect at hearing and when you get full discharge.

 

[sparkle]

Can creditors sue LLC post Bankrupty?

I have a discrepancy with a lawyer that is telling me that creditors can come and sue the LLC post personal bankruptcy. I am the personal guarantor on all of the business debts and thus these debts will be discharged in my Chapter 7 bankruptcy. I am listing on my petitition that although Chapter 7, most debts are business related. She is telling me to dissolve my LLC so I will not be sued post bankruptcy. Can creditors sue the LLC although I was the personal guarantor on all debt and since that is being discharged, can the creditors still sue the LLC if I do not dissolve it?