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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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My husband and I owned our own small business. We made a huge

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My husband and I owned our own small business. We made a huge mistake by putting many business expenses on personal credit cards. We are now about 50k in debt due to this business debt and ready to file for personal bankruptcy or going to settlement with credit card companies. Is there any way the business (which we have shut down). debt can be transfered off of our personal credit cards back into the business if we can prove through statements that the debt is due solely to that. So as to save our personal credit?..As of yet we have just shut the business and have not put the business in bankruptcy and at this time the business is only showing 5k in debt on one business crdit card.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 8 years ago.


Thank you for your question. I am happy to assist you.

It is typically not possible to transfer your personal liability to a business.

The assets that you may retain in a bankruptcy depend upon the Chapter bankruptcy you file and the state exemptions.

As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.

A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets that exceed your exemption.

A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.

Here are the exemptions for Virginia:

I hope that the information which I provided was helpful to you.

Ellen and other Bankruptcy Law Specialists are ready to help you