How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
9968427
Type Your Bankruptcy Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

My business is a sole proprietors ship. I assume if I declare

Customer Question

My business is a sole proprietors ship. I assume if I declare bankruptcy my personal debt and assets will be looked at. But what about my husband...can he be exluded?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 5 years ago.
Welcome to JustAnswer,

So sorry to hear of this dilemma. If my answer is not clear to you, please ask me for clarification by using the reply button.


A husband and wife are not required to file a bankruptcy jointly. One party can file without the other.

The effect on the non-filing spouse will be dependent upon whether there are joint debts and/or joint assets. If there are no joint debts and no joint assets, there may be little or no effect on the non-filing spouse. If there are joint debts and/or joint assets, the non-filing spouse would remain liable on the joint debt and the joint assets would need to be included in the filing.

Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.
Customer: replied 5 years ago.
we own the house together but before he put the house in my name too he got an equity loan....how will that be viewed?

Expert:  Ellen replied 5 years ago.
Your personal liability on the mortgage will be discharged Your husband's liability on the mortgage will not be affected.Whether you can keep the house depends upon what State you reside in and the amount of equity in the house
Customer: replied 5 years ago.
One last clarification
Even though my name is XXXXX XXXXX the equity loan, i AM considered liable for that loan because me name is XXXXX XXXXX house? Is that right?
Expert:  Ellen replied 5 years ago.

Regardless of the bankruptcy filing, you are not personally liable on the equity loan since you did not sign the loan
Ellen and other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
I am willing to pay for a new inquiry....if my business owes money for products to manufacturers will the debt be covered, taken away by the bankruptcy
Expert:  Ellen replied 5 years ago.
Thank you for your new question.

Since the form of your business is a sole proprietorship, all of the assets and all of the liabilities of the sole proprietorship will be included in your bankruptcy.

This does mean that all of the business debt will be discharged/taken away including the debt owed to manufacturers.