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Can I claim bankruptcy personally without it affecting my husband or my business?
Thousand Oaks, CA
Viewed 35 times.
Posted 28 days ago in Bankruptcy / Debt
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I own a small hair salon with my Mom. I opened this business before I was married. The business makes enough to pay the bills, payroll and a monthly check to me for $800. I used to pay myself $1600 a month. Needless to say my personal debt has sky rocketed due to the terrible economy and my new half a paycheck. Can I file bankruptcy personally without getting my business involved? Also, will it affect my husband? I owe $20,000 in credit cards, I am paying my entire paycheck and tips to them every month, about $1000.00 the cc payments are starting to get bigger than what I can pay as my paycheck gets smaller and smaller and I can no longer help my husband financially, and now he has to use cards occassionally.
Answers (1)
Gailyn Wink
This attorney is licensed in Colorado.
Posted 12 days ago.
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Your ownership interest in the business will be a factor in bankruptcy. This means that in Chapter 7 bankruptcy any assets owned by the business would be liquidated to pay your creditors. Because of this, most people in your situation (assuming the business has assets) would choose a Chapter 13 bankruptcy, where you can keep assets and you are put on a monthly payment plan for 3-5 years. This is a very basic run-down, you would need to speak to a bankruptcy attorney for advice specific to your business situation.
Your husband would not face any liability from you filing for bankruptcy, but his income and expenses will be looked at by the Court in determining your income and expenses. Any money he regularly contributes to the household needs to be disclosed to the court, and they will also require other financial documents from him, even though he is not included in the bankruptcy. |
