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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 11641
Experience:  JD, MBA
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Is it possible to file for personal bankruptcy without losing

Resolved Question:

Is it possible to file for personal bankruptcy without losing my business which is an LLC? What kind of options might I have to stop the building debt but still attempt to save the business?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 5 years ago.
Hello and thank you for allowing me the opportunity to assist you.

Can you explain your situation in detail? I cannot answer your second question (options to stop building debt) if I don't know what the problem is.

Thank you.
Customer: replied 5 years ago.
I opened a business last year (November) which took longer to get open then I had planned and I ended up under capitalized when I finally did get open. I've been growing the business very well, but still not covering expenses. I've drawn into my personal credit cards to survive and now they are nearing maxed out. A couple of them have been capped off (credit limit reduced) because I've been amassing debt quickly in order to survive. I have not taken an income from the business so I therefore have no source of income for loan appications and have been turned down several times. My once near perfect credit rating has taken a nose dive and now I'm getting desperate. This business is going to be successful, but I have to find a way to hang on until it builds up to the level of break even.
Expert:  TJ, Esq. replied 5 years ago.
Hi again.

Please note that for legal reasons my answers are only intended to be general/educational information rather than specific legal advice. If you need specific legal advice, then you must consult with a local attorney in your jurisdiction.

The business would become part of your bankruptcy estate if you were to file for bankruptcy, and it would be used to repay your creditors. The bankruptcy trustee would basically run the business and possibly sell it or liquidate it. In answer to your second question, based on what you wrote I don't know of a feasible way to stop building debt and save the business ... unless you have wealthy family who can help. Unfortunately, it doesn't sound like you're going to get any loans any time soon. I don't know what else to tell you about raising capital.

Have I satisfactorily addressed your concerns? If not, then feel free to let me know, as I will be happy to clarify my answer or help with your follow-up questions. In the meantime, please remember to click the green accept button so that I will receive credit and compensation for my time (doing so does not end our discussion). Positive feedback is always appreciated as well. Thank you and good luck!
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