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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Im the sole owner of a small business operating as an LLC

Resolved Question:

I'm the sole owner of a small business operating as an LLC for four years. I've used personal credit cards (in my name only) and have debt totalling about $30,000. I can no longer keep up with the payments on the credit cards. However, the business is starting to break even and has potential to do better. Should I consider personal and or business, Chapter 11 bankruptcy. My other concern is to keep my husband out of the bankruptcy. Thank you for any advice you have.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.
Hello,

You may want to consider a personal chapter 13 bankruptcy as it may allow you to keep your business. I will explain.


As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.



A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.



A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.


Here are the exemptions for Ohio:
http://www.bankruptcyinformation.com/OH_exemp.htm



Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER
Customer: replied 6 years ago.

Hello. My specific questions were not answsered. What I asked was: Should I consider personal and or business, Chapter 11 bankruptcy? My other concern is to keep my husband out of the bankruptcy.

 

Your answer told me the difference between Chapter 7 and Chapter 13 and mentioned nothing about Chapter 11 or keeping a spouse out of bankruptcy proceedings.

 

I am not happy that I paid $30 for your response that did not address my question.

Expert:  Ellen replied 6 years ago.
I have not been paid. I am only paid if you accept my answer.

I was trying to explain that it appears that you would benefit from a personal chapter 13 . A chapter 13 is a simplified chapter 11 for an individual and I suggested that you consider this.

A husband and wife are not required to file a bankruptcy jointly. One party can file without the other.


The effect on the non-filing spouse will be dependent upon whether there are joint debts and/or joint assets. If there are no joint debts and no joint assets, there may be little or no effect on the non-filing spouse. If there are joint debts and/or joint assets, the non-filing spouse would remain liable on the joint debt and the joint assets would need to be included in the filing.
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