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Attorney2020, Attorney
Category: Business Law
Satisfied Customers: 2579
Experience:  I am a practicing attorney. I have experience in business law, bankruptcy, real estate law and estates.
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I am looking at options bankruptcy. Over the past 2 years, I

Customer Question

I am looking at options for business bankruptcy. Over the past 2 years, I have racked up about $200K in business debt and just don't have the revenue to make the payments anymore. Literally, everything I make just goes to paying the payments and interest.
I am structured as an LLC but am looking at business bankruptcy as an option but want to ensure the banks can't take my house or attach a lien against other personal assets. I have three business lines of credit and a couple of credit cards, all currently maxed out or near maxed out.
If you have general advice or good resources for business bankruptcy facts, please let me know. Thanks.
Submitted: 1 year ago.
Category: Business Law
Expert:  Attorney2020 replied 1 year ago.

Did you sign personal guarantees on any of the credit lines or credit cards?

Customer: replied 1 year ago.

They don't show up on my personal credit but, technically, I believe they can use personal credit to obtain the loan. That being said, I think, technically I would be responsible personally but am not sure how often banks try to go after the founders personal assets when a business loan default occurs.

Expert:  Attorney2020 replied 1 year ago.

This occurs often. If the contract terms you to personally guarantee the loan, the bank goes after the entity that it can collect money from whether that be the individual or business. If you are planning bankruptcy to discharge debts and you personally guaranteed the loans, it would require you to file business and personal bankruptcy.

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