Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification.
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.
If this is not possible than you can file a non consumer bankruptcy and discharge all debts that were used for your business.
If over 50% of your debt is business debt, you can qualify for Chapter 7 even if you have substantial income.
Meaning you do not have to be worried about passing the means test for income to file a chapter 7
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
He is 100% owner of the corporation, I am the director
it will hurt your personal credit score significantly but if it is your only option than you may need to consdier it.
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
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.
Our credit line does not show up on my personal credit report - does make a difference/
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,
often times business debts do not show up on an individuals personal consumer credit report
Even if your name is XXXXX XXXXX as a guarantor
So what does that mean for my personal credit?
it would not be affected.
Thank you so much for your help and advice. It was very helpful
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).