Personal disclosure when creating a partnership

Asked 11 months ago - Houston, TX

I have worked for my soon to be father in law for about seven years now. We have a good relationship now, but we had a rough patch when I didnt work with him for a two of the seven years. During those years, I fell on hard times and ended up filing for bankruptcy. I have been back working with him lately and now that I am recently engaged to his daughter, he wants to make me a small partner in his company. I am not proud of the bankruptcy and I don't think it would be helpful to bring it up to him. Now that we are going to be business partners, do I have to disclose my bankruptcy to him now?

Attorney answers (3)

  1. Michael Glynn Busby Jr.

    Pro

    Contributor Level 19

    Answered . this is more of the ages the importance ship question then a family law question should repost it have a business lawyer answer at the same time if your documents in your forms state that certain disclosures must be made then you need to comply with the disclosure or have the obligation to disclose removed from whatever form you using

  2. Edward James Kazaleh

    Contributor Level 14

    Answered . While not really a legal issue, won't you be stupid to not disclose this important thing to your future father in law and wife?

    We provide Strong & Cost Effective legal work in Houston and Dallas offices, as well as, by appointment Statewide.... more
  3. Fran Brochstein

    Contributor Level 18

    Answered . I agree with the other attorneys that have already answered this question.

    Let me add my 2 cents...I want to encourage you to disclose to your future wife and father-in-law now. They might be angry -- but but they will angrier if they discover it later and feel like you tried to hide it from them.

    You might be wondering how will they find out? Here are a few examples -- If he goes to add you as a signatory to any bank account, the bank will know and tell him. If you refuse to be added to any bank account, he will be suspicious. This is a no win situation for you - you need to disclose since there is no way to hide it forever.

    Bankruptcy records are public documents and anyone can discover that you filed for bankruptcy. It's easily searchable by businesses and even your neighbors.

    Also, your new wife will eventually find out and probably tell her father. How? If you marry and try to buy anything on credit such as a car or home, it will be disclosed to her.

    If you fill out any credit application that includes "have you ever filed bankruptcy" and you lie on the application, it is going to be a problem too. You need to be truthful on all credit applications. If you need an example of lying on credit applications, just look at the couple on the t.v. show about NJ Housewives. I believe the wife is now being prosecuted for lying on a home application loan years ago.

    So you need to be a mature person and admit what happened in your past.

    Good luck!

    Fran Brochstein has over 20 years legal experience & enjoys educating people about Texas laws and mediation. She... more

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