Former business partner from 2yrs ago refuses to properly dissolve the business. He claims now he will do personal and business bankruptcy. How can he do a business bankruptcy when it's co-owned 50/50. Debt still outstanding and bills have been paid monthly. No refusing to pay. He has already filed bankruptcy before personally a few years ago. How can he do it again? Seems like he just wants to stick the debt on me. I do not want my credit ruined. What do I do here? Any help is appreciated?
Chapter 7 Bankruptcy Attorney
Businesses are not entitled to obtain a discharge in a bankruptcy so there is almost never any reason to file a business bankruptcy except to reorganize the business debts. Hope this perspective helps!
You need to refer to the partnership agreement. You cannot do anything about im filing individually and that alone brings partnership interests into the fold. however A general partner can file for involuntary bankruptcy, but only if the business is unable to pay its debts. (A limited partner, someone without an active role in the business, cannot file for involuntary bankruptcy.) Even if the partnership isn't paying its creditors, a bankruptcy judge may reject an involuntary bankruptcy if the debts are in dispute. Partners opposed to bankruptcy can contest an involuntary filing. If a judge rejects the bankruptcy, the partner who requested it may have to pay the other partners' court costs
A business entity can file bankruptcy with the approval of its Board of Directors. If it is an LLC, then the manager can file bankruptcy if the operating agreement provides such authority. If he has obtained a discharge in a Chapter 7 case filed within the past 8 years, he can file bankruptcy but cannot obtain a discharge. Your question is somewhat scattered. You need to consult with an attorney for an in-depth analysis. Search this site, or ABCworld.org for a certified business bankruptcy lawyer in your area.
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