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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2820
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Can you file business bankruptcy and then sell the business?

Customer Question

Can you file business bankruptcy and then sell the business? If you used personal credit cards to purchase parts for the business, can you include them in the business bankruptcy?
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 1 year ago.

If you have incorporated, or are an LLC, then that entity is separate from you. You own the shares/stock of the business though. If the business files bankruptcy, the assets are liquidated to pay creditors. If there is any 'business' left after that, it can be sold, sure.

If you file personal bankruptcy to discharge your personal credit cards and business guarantees, the shares of the business can be sold by the bankruptcy trustee to pay your personal debts. Now, this doesn't happen often, as most businesses filing, have no value and owe more than they are worth. Once discharged, and the bankruptcy case is over, you are free to sell the business

Your personal credit cards cannot be listed in a business bankruptcy, but they can be listed and discharged in your personal bankruptcy.

let me know if you have any other question, thanks

Expert:  Terry L. replied 1 year ago.

following up, did you have any other questions? If not, please rate me 5 stars! thanks

Expert:  Terry L. replied 1 year ago.
question is still showing open. please click accept and rate my answer. thanks
Expert:  Terry L. replied 1 year ago.

question is still showing open. please click accept and rate my answer. thanks