Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
1) Was the Yellowbook debt - or any other business debt(s) - personally guaranteed by you?
2) Does your business have any assets that could be attached by a creditor?
Given the information you provided, filing a business Bankruptcy will not help you. This is because Bankruptcies can only discharge debts owed by individuals, not debts owed by businesses. (The main purpose for business Bankruptcies is "re-organization" - where business creditors agree to accept partial payment for debts.)
Additionally, since you personally signed for the advertising debt, you can be held personally liable for that debt, whether or not you file a business Bankruptcy. This means the creditor can - with a lawsuit - get a judgment against you, unless you file a personal Bankruptcy. The timing of the Bankruptcy filing is not crucial - it can be filed before, during, or after the lawsuit.
I think this is what you wanted to know. If not, please let me know.Thank you!
If you want to file a business Bankruptcy, you have to do it before the business is closed. You cannot file a Bankruptcy for a business that is closed.
Yes - I do think the collection agency will continue to pursue a judgment against you personally, even if they cannot get a judgment against the business because of a business Bankruptcy.
You can send a notice that a Bankruptcy filing is imminent. However, whether or not you send such a notice, there is a very good possibility that the debt collector will settle for less than what is owed, as most generally do settle. You can expect a settlement of 40-60% of the outstanding balance.
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