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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17222
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I am thinking about getting a divorce from my husband of 13

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I am thinking about getting a divorce from my husband of 13 years. We own a business together and due to his bankruptcy 10 years ago (will be off his credit in September 2011) I have used my credit to secure loans and credit lines for the company. All our private matters have always been pulled separately. Is there a way to divorce my husband without hurting my personal credit since we are only connected business wise? In worst case scenario, is it possible to file for bankruptcy only on the business debt and keep my personal credit intact?

Thank you!

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on.

WALLSTREETESQ :

During your divorce proceedings your attorney should make sure all debts which went to the business that are in your name are paid off or settled by your ex spouse.

WALLSTREETESQ :

If this is not possible than you can file a non consumer bankruptcy and discharge all debts that were used for your business.

WALLSTREETESQ :

If over 50% of your debt is business debt, you can qualify for Chapter 7 even if you have substantial income.

WALLSTREETESQ :

Meaning you do not have to be worried about passing the means test for income to file a chapter 7

Customer:

If I file the non consumer bankruptcy it will not affect my personal credit? Im a licensed loan originator in Florida and could lose my license even if my personal credit is perfect

Customer:

He is 100% owner of the corporation, I am the director

WALLSTREETESQ :

it will hurt your personal credit score significantly but if it is your only option than you may need to consdier it.

WALLSTREETESQ :

The corporation can file a chapter 11, and pay off some of the debts, but if you are personally liable the creditors still can come with you

WALLSTREETESQ :

You may need for him to sell his assets in the Corp to pay of your debts in the divorce so you are not affected.

Customer:

Our credit line does not show up on my personal credit report - does make a difference/

WALLSTREETESQ :

If it does not show up on your personal credit report it may be secured by him or the Corp., and if it defaults it should not show up on your personal credit report,

WALLSTREETESQ :

often times business debts do not show up on an individuals personal consumer credit report

WALLSTREETESQ :

Even if your name is XXXXX XXXXX as a guarantor

Customer:

So what does that mean for my personal credit?

WALLSTREETESQ :

it would not be affected.

Customer:

Thank you so much for your help and advice. It was very helpful

WALLSTREETESQ and 2 other Bankruptcy Law Specialists are ready to help you