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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Business Law
Satisfied Customers: 19664
Experience:  B.A.; M.B.A.; J.D.
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I was added as a member to a business and have been a first

Customer Question

I was added as a member to a business and have been a first time owner of a business for 7 months now.
I realized that the bank account that the original owner setup, does not have my name on it. I also realized that the account I have for myself is also a business account. He was paying me via payroll and owner commissions to this account, so I initially assumed that I would use the card I had for "personal expenses". Now that I am about to go through a personal bankruptcy here in Arizona, I have researched and realized what a huge mistake this was! I need some advice. Do I close this separate business account now and make sure I'm now getting paid to a personal bank account?
Submitted: 2 years ago.
Category: Business Law
Expert:  Phillips Esq. replied 2 years ago.
Hello: This isCustomer I am a licensed Attorney and I will be assisting you today.
I was added as a member to a business and have been a first time owner of a business for 7 months now.
I realized that the bank account that the original owner setup, does not have my name on it. I also realized that the account I have for myself is also a business account. He was paying me via payroll and owner commissions to this account, so I initially assumed that I would use the card I had for "personal expenses". Now that I am about to go through a personal bankruptcy here in Arizona, I have researched and realized what a huge mistake this was! I need some advice. Do I close this separate business account now and make sure I'm now getting paid to a personal bank account?

Response: If it is a business account and you are filing for a personal bankruptcy, there is no need to close the business account. Also, you CANNOT close your bank accounts in anticipation of your bankruptcy filing. In addition, you MUST disclose all accounts that you closed within one year prior to your bankruptcy filing.
Your earnings should be deposited in your personal bank account instead of a business account.