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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2822
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I am married and file a joint tax return. I am also self

Customer Question

I am married and file a joint tax return. I am also self employed and have a small business with and LLC business structure. I have a ton of credit card debt and am in the process of consulting with local BK attorneys to discuss my options. My first attorney advised me he could get me a chapter 7 bk. My question was that 2 of my many credit cards have both my business name and my personal name on the account, Holding us both responsible. I asked the attorney that if I file chapter 7 would the lenders still come after my LLC. His response was if they do then it was no big deal as I could just disolve my LLC. I guess Im concerned in that I dont want to disolve my LLC but if I must then how long before I can re-open under a new name which Im sure that may have legal issues as well. What happens in the case where both business and personal name are on credit care and I file BK? Is chapter 7 the best option here. If I do have to disolve my LLC then can I open a new one under a new name and if so at what point can I do that. I am in healthcare and people arent going to wait for me to get my personal and business affairs in order if you know what I mean.
Submitted: 10 months ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 10 months ago.

Hi thanks for your question. yes, the bankruptcy will get rid of the consumer debt for you and the business guarantees you provided. The LLC must dissolve and close to clear it's obligations, which entails liquidating the assets of the business to pay off the creditors as much as possible. This forum cannot advise you on how to avoid your creditors and if you can do so legally or not. There are fraudulent conveyance rules to prevent assets to be moved to the new company. Creditors can file suit for fraud, if you are basically doing the exact same thing with the new company. Also, the new company may have issues if you need to use the same vendors, as they all will pull your personal and business credit history when deciding to open a new account for the new LLC. So, you should work with an attorney who handles business formations and dissolution to properly advise you based on the individual facts in your case and in your field. I'm not saying it can't be done, but there are a lot of risks involved. thanks for your question, good luck .

Expert:  Terry L. replied 10 months ago.

let me know if you have any questions. if not, please rate my answer. thanks

Expert:  Terry L. replied 9 months ago.

question is still showing open. Please rate answer for it to close. thanks

Expert:  Terry L. replied 9 months ago.

question is still showing open. Please rate answer for it to close. thanks