With debt accrued due to a start-up business failing in 2008, is it possible to file bankruptcy in the business name?

Asked over 1 year ago - Atlanta, GA

The start-up was in the state of GA, and never produced any revenue.

Attorney answers (5)

  1. Glen Edward Ashman

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    Contributor Level 20

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    Answered . You haven't given anty necessary information to answer you. A lawyer would want to know if you personally guaranteed the debt, how much debt you have, what income and assets you have, how the business was structured (corpotion, sole proprietorship, etc), the type debts, etc.

    A lawyer would need to sit down with you and see all that. Feel free to contact my office at 404-768-3509 if you want a consultation (go first to www.glenashman.com and get our pre-appointment free worksheet).

    If you find this answer helpful, please mark it here on AVVO as helpful. In answering you, I am attempting to... more
  2. Shonterria Renek Martin

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    Contributor Level 8

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    Answered . We would need more detailed information in order to answer your specific question. There are several bankruptcy options available for the consumer and the business and you would need to consult with an attorney to see which option best fit your needs.

  3. Ashley Anne Digiulio

    Pro

    Contributor Level 16

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    Answered . of course, it is always possible to file a bankruptcy, the question is how is the best way to file bankruptcy. If all of the business debts are listed only in the name of the business, and you did not personally guarantee any of the debts, then you can file a business chapter 7 bankruptcy and discharge the debt without having to file personal bankruptcy. If, on the other hand, you personally guaranteed any or all of the business debts, which is generally accepted practice of almost every creditor, and a much more likely scenario, you will need to file personal bankruptcy and simply close down the business and all of the business accounts. One thing to keep in mind, is that since the business failed, any business assets would become your assets if you are the sole owner of the business. We can help you starting with a free consultation. Feel free to give me a call At 770-309-9551. We will discuss your qualifications for debt relief and the options available to you when and if you are ready to call.

    The DiGiulio Law Firm, LLC. Phone: 888-540-4529 Website: www.atl-law.com Atlanta, Marietta, Lawrencevile,... more
  4. Robert M. Gardner Jr.

    Contributor Level 18

    2

    Lawyers agree

    Answered . A business can file a chapter 7 to allow the assets, if any, to be liquidated, and as a way for creditors to understand that the business is dead. It can be a less expensive way to wind things down that protracted litigation over debt. However, a business is not entitled to a discharge in a chapter 7, and any co-debtors or guarantors are still on the hook. A business cannot file a chapter 13, but can reorganize debts under a chapter 11. However, the latter is an expensive process only recommended for ongoing concerns, so that does not sound like your best option. I agree with the others that you should sit down with a bankruptcy attorney who handles business cases to go over all of your options to see if you can get where you need to be.

    The above information is general in nature. In order to obtain more specific and legal advice upon which to base... more
  5. Diane L Gruber

    Pro

    Contributor Level 18

    3

    Lawyers agree

    Answered . The debt is likely in YOUR name, not the business's name. You will need to file a personal bankruptcy, either Ch.7 or Ch.13. Discuss with experienced BK attorney.

    Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662.... more

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