Unable to repay business loans w/ personal guarantee - personal bankruptcy good option?

Asked about 5 years ago - New York, NY

I had several loans w/ personal guarantees for a business that is no longer profitable. The business has ceased operations and is now in the process of filing for insolvency. I have been served court papers indicating that one of the banks have filed for judgment and that I must appear within 30 days. Understanding that the outstanding business loans with my personal guarantee have transferred over to me as an individual, is filing for personal bankruptcy the best option if I as an individual have no means of repaying the above-referenced loans? Will the business insolvency come under review when I file for personal bankruptcy? Sidenote: I have no assets to liquidate and am currently being supported by family members.

Attorney answers (1)

  1. Jeffrey Daniel Larkin

    Contributor Level 15

    Answered . Sounds like bankruptcy is the best way to go for you. The business bankruptcy will have a separate trustee appointed and your personal filing will not "come under review"

    LEGAL DISCLAIMER
    Mr. Larkin is licensed to practice law in CA and is located in San Diego. His response here does not constitute legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Larkin strongly advises the questioner to confer with an attorney in their own state to acquire more information about the specifics of their case.

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