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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2815
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I have a small buisness and my house is going in to forclosure,

Resolved Question:

I have a small buisness and my house is going in to forclosure, can I protect my buisness
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 5 years ago.
Hi and thank you for your question. In the future, you can request me to answer any further questions.

if the business is a separate entity, then there would be no impact on the business, as the assets are separate.

If the business is just a sole proprietor, or a DBA, then the assets are yours and can be attached if there is a monetary judgment. A judgment lien can be placed on your assets in that situation.

Thank you for your question, let me know if you have any further questions, thanks.
Customer: replied 5 years ago.


I am an S corp, what do you mean by a seperate entity

Expert:  Terry L. replied 5 years ago.
So, as an S-corp, the business assets are separate from yours. Unless the business signed for the debt too, the foreclosure would not affect the business. Chapter13 bankruptcy can stop the foreclosure by curing the default and paying back a percentage of your consumer debts over 3-5 years.

If you do not want the home, then chapter 7 may be an option for you as well, to discharge the debts.

Talk to a local bankruptcy attorney for a free consultation if you are considering filing.

Thanks for your question, good luck.
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