Bankruptcy Protection

Asked over 1 year ago - Torrance, CA

I am about to start a business. I will be signing the lease guarantor. If business went south and I could not pay rent then I am planning to file for bankruptcy.

1. AFTER I am granted bankruptcy, can the creditor come for my cars for payment, or future job to get automatic payments like percentage cut from my future job paycheck?

Thank you!

Attorney answers (4)

  1. Brian Crozier Whitaker

    Contributor Level 17

    1

    Lawyer agrees

    Answered . No

  2. Dorothy G Bunce

    Pro

    Contributor Level 20

    2

    Lawyers agree

    Answered . If you have a successful bankruptcy, most types of creditors cannot continue any efforts to collect from you. The exception would be for alimony, child support, some income taxes and student loans. This sounds like a poor business model - maybe you would be better off considering another way to make money than entering into a lease that might send you into bankruptcy. Hope this perspective helps!

  3. Stuart Gregory Steingraber

    Contributor Level 18

    Answered . If you are going into business requiring your personal guaranty on a lease and the business fails, your personal BK will trump your liability on the remaining lease term. No creditor can seize your assets post-bankruptcy unless their debt/lien survives the BK. This results usually from some kind of fraud in the transaction.

  4. Brad Francis Weil

    Contributor Level 11

    Answered . If you file a Chapter 7 then your post petition assets and income are protected from your pre-petition creditors. If you file a Chapter 13 or individual 11 then your post-petition income must be dedicated to a plan of reorganization.

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