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Richard
Richard, Attorney
Category: Business Law
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Experience:  32 years of experience practicing law and a businessman.
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I am considering filing bankruptcy on/for my business. Sole

Resolved Question:

I am considering filing bankruptcy on/for my business. Sole Proprietorship in TN. I am currently in debt for business related items for approximately $200,000. This does not include a lease which has 3 years left on it. All of the business debt is solely in my name.

Personal money has been loaned (and documented) to keep the business afloat during this economic downturn. Since the business debts are also personal for me, do I need to file personally also? How will it affect joint funds, and/or my spouse's income.
Submitted: 5 years ago.
Category: Business Law
Expert:  Richard replied 5 years ago.

Good morning. Since a sole proprietorship is basically you...you will need to file bankruptcy for both simultaneously. Your jointly held money will be at risk, but your wife's income will not. Thus, you will want to get this money out of the joint accounts and you want to set up separate accounts going forward.

 

 

 

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Please be aware that the information provided here is not legal advice. Rather it is simply general information. All states have different intricacies in their laws and any information given is simply general information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

 

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Customer: replied 5 years ago.
Is the business allowed to pay my spouse back at least a portion of the loans made to the business? Those loans were not in the $200,000 and totalled approximately $92,000 over 5 years. Would this be okay to do prior to filing or would that be inappropriate?
Expert:  Richard replied 5 years ago.
Those are going to be preferential payments and revoked. I'm sorry!
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