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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Heres my issue: I own a small biz and had a running credit

This answer was rated:

Here’s my issue:
I own a small biz and had a running credit line in the Corp name and my own name.
When things where good I would borrow and pay it back as needed. In 2008, things went south with the economy and my biz.
I paid the monthly payments until it became impossible. About a year ago I stopped.
I started up making payments again in the last 6 months but they told me to stop.
I owed them $31K.
They recently gave me a few options to repay.
1 – One time payment of $18K.
2 - $4K a month for 12 months
3 - $7K down and $2K a month for 12 months.
I can’t do any of these.
They say this will go to court and the judgement will go against me and I will have to pay the $31K from what corp assets I have at the time.
Here’s the twist. I am declaring Bankruptcy Chapter 7. My wife names is also on the line of credit.
I’m not sure what to expect will happen with this.
Can you give me some thoughts.

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 :

This is a common situation,

WALLSTREETESQ :

if you file bankruptcy the credit line would be discharged, however your Corp could be sued for any debt, and if your spouse is on the debt, she can be sued as well,

WALLSTREETESQ :

If you file a joint bankruptcy, with your spouse the creditor would not get anything from either of you,

WALLSTREETESQ :

in terms of the corporation assets, if you file a chapter 7 bankruptcy your corporation assets would have to be listed anyway, and the trustee of the court can take those assets.

Customer:

Ok

Customer:

I'm filing 7 then after thats donw She's filing 7

Customer:

Then it 13 for the both of us

Customer:

The corp is not filing

Customer:

The corp is a Sub-S and shows a loos most years

WALLSTREETESQ :

That is fine,

WALLSTREETESQ :

if the corp owns any assets they can be taken

Customer:

We're a limo co. Most cars are leased. Very little assets other then that

Customer:

OK so what I hearing...

Customer:

Give this dept to my bankruptcy lawyer and add it to the list of debt

WALLSTREETESQ :

yes,

WALLSTREETESQ :

any debt that your personally guaranteed should be listed.

Customer:

Oh ok. I thought corp debt would be exempt.

Customer:

Ok thanks. I will do just that.

WALLSTREETESQ :

Good luck, Corp debt is not listed, but if you are personally liable you have to list them.

WALLSTREETESQ :

Good luck, and if you have any further questions please do not hesitate to ask.

WALLSTREETESQ :

If satisfied please provide us with positive feedback so we can receive credit.

Customer:

Wait

Customer:

what are u saying

Customer:

Corp debt is not listed, but if you are personally liable you have to list them.?

Customer:

r u saying theat I have to list my corp debt when I file personally

WALLSTREETESQ :

If you are personally liable yes,

WALLSTREETESQ :

as if you do not,

WALLSTREETESQ :

they can sue you personally for the debt,

Customer:

oh ok

WALLSTREETESQ :

The only way you are personally liable for corp debt is if you are a cosignor,

WALLSTREETESQ :


If you have any further questions please do not hesitate to ask.







If satisfied please provide us with positive feedback so we can receive credit.



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