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Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 30913
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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In a Chapter 7 filing in NY state, is a Commission owed to

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In a Chapter 7 filing in NY state, is a Commission owed to NY state for lotto sales in the debtors closed business covered under an individual filing.

Hi - my name is XXXXX XXXXX I'm a Bankruptcy litigation attorney. Thanks for your question.

Was the business incorporated or not?

Customer: replied 3 years ago.

I believe so- I am meeting with the debtor tomorrow- but he had a grocery store, and individually signed as well. The store is closed-

Ok. Thanks for the response.


The following is based on the assumption that the business is incorporated, an LLC or some other type of business entity:


An individual CAN include a business debt IF he/she executed a personal guaranty to the creditor for the debt/loan/line of credit, etc. In this case, the individual's personal responsibility for the debt could be discharged through an individual chapter 7.


HOWEVER, if the individual debtor DID NOT sign a personal guaranty, then the individual is not liable for the business debt and CANNOT include the business in his/her individual bankruptcy.


Instead, the incorporated business would have to file a separate bankruptcy in order to be relieved of the debts.


I hope this answers your questions, but if you have others, please REPLY and I'll be glad to respond. Thanks.

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