Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
1) The business will still owe the money, but you will no longer be personally responsible for the business credit cards. The fact that you have business credit cards will not make a difference vis-a-vis the Bankruptcy filing.
2) It takes an attorney approximately 2-4 weeks to prepare the papers to file. The trustee meeting is approximately one month after filing. The case is closed approximately 6 months after filing.
3) You have to list all assets worth more than about $100. However, this price is determined by how much those assets could be expected to sell for in a garage or yard sale, or on ebay - not what you paid for the items.
4) Advertising fees are not considered to be luxury items. However, any purchase made without the intention to pay it back is considered to be a "fraudulent" purchase - regardless of the cost, regardless whether it is a luxury item, and regardless of when made - and is not dischargeable.
You are allowed to keep any an all personal property if the total value is less than $4,000. (This is in addition to one car, which you can keep if the value (Kelly Blue Book) is less than $2,400.) The only way the Bankruptcy court would have any idea of what you own is if someone (perhaps a personal creditor) knew, and informed the court.
Since advertising fees are not luxury items, there will be no presumption of fraud - as there would be if the charges were for luxury items.
If you stop paying, and do not file a Bankruptcy, the creditors can also garnish bank accounts, and place liens on property. If you have neither, there is nothing they can do to you.
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