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Can I separate my new business from my personal bankruptcy?I've got to incur debt to make my business operate .
Houston, TX
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Posted 3 months ago in Bankruptcy / Debt
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I am trying to get a new business off the ground while in the middle of a chapter 7 bankruptcy. My new business needs loans for upfront purchases of materials and equipment, but the law says I cannot incur any new debt. In the meantime my family is going hungry, I cant make the money to keep up my obligations for my exempted properties, and my family will end up homeless. What are my options? Is there anything I can do to separate my business from my personal bankruptcy?
Answers (2)Steve Fromm
This attorney is licensed in Pennsylvania.
Posted 3 months ago.
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If the business is incorporated and it incurs the debt and not you personally, then perhaps you may be OK. However, you must talk with your bankrupcty attorney before doing anything, since creditor laws vary from state to state and the bankruptcy court may not even although this transaction even it technically is OK.
Hope this helps. LEGAL DISCLAIMER Mr. Fromm is licensed to practice law in PA. The response herein is not legal advice and does not create an attorney/ client relationship. The response is only in the form of legal education and is intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received. By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question. Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency. Kaiser Wahab
This attorney is licensed in New York and 1 other state.
Posted about 1 month ago.
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You should tread carefully as it is a common misconception that the limited liability protection of an entity goes both ways. Your membership stake in the LLC is technically a personal asset that can get mixed up in your bankruptcy if you are not careful and you should consult with a local bankruptcy attorney beforehand.
I hope this helps. Disclaimer: This answer is for informational purposes only and does not constitute general or specific legal advice, nor create an attorney client relationship. Next question: I live in florida and have been served with a summons and complaint from my brother that lives in duchess county NYl Previous question: how to fight a dui |