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LLC bankruptcy's effect on personal credit/ assets
Canton, CT
Viewed 1249 times.
Posted about 1 year ago in Bankruptcy / Debt
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My husband suffered a catastrophic illness seven years ago, and I assumed ownership of his small business (llc). He is no longer legally affiliated with the company, but a few credit cards are still in his name. Due to ongoing medical costs, I am unable to pay off these credit cards, as well as a business line of credit. How will filing bankruptcy affect each of our personal credit ratings, and our personal assets. I don't want to file for bankruptcy, and would prefer some other solution. Is a debt negotiation company a wise alternative? Our business debt is approximately $100.000, and personal credit card debt approximately $24,000. Our only other debt is our home mortgage, $1,550/month. We do not own our business building.Thank you.
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Answers (1)
Kurt A. O'Keefe
This attorney is licensed in Michigan.
Posted about 1 year ago.
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Debt negotiation companies are scams, as far as I can tell from listening to their ads and the personal experience of my clients. They certainly cannot do anything you cannot do yourself. Their written contracts do not conform to the sales pitch.
Is the LLC closed? Your bankruptcy has no effect on his liability, whatever he owes he still owes after you file. His bankruptcy would have no effect on your liability, whatever is in your name now stays that way. Exemption of assets is a matter of state law, each state has the choice of using the federal exemptions, or opting out and using only that state's exemptions. In states that allow using the federal, you have the choice of using that or your state's exemptions. You need a list of all your property, home, clothing, dishes, furniture, everything, and its current value, what would someone pay you for the stuff at a garage sale. Take that to an attorney in your state experienced in bankruptcy law for those answers. Bankruptcy must be removed from your credit report after 10 years. It does not prohibit you from borrowing money. If you file a chapter 7 now and get a discharge of debts, you cannot file another 7 for 8 years. |
