It depends on the "assets" that you have. Some are exempt under Bankruptcy rules such as IRA's, 401(k)'s, etc. Under Federal exemptions, you can even exempt $11,975.00 of cash or money in the bank. What kind of business is it and does the business have assets separate from your assets? More information is necessary to determine whether Bankruptcy is right for you.
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We would need to look at all of your personal assets and the businesses assets to determine what you'd be able to exempt. Many people who file for bankruptcy are able to keep all of their assets while getting rid of all of the debt. There are other important things to consider if contemplating bankruptcy. I offer a free consultation at my office if you are interested in going over your options.
Very best regards,
Errin P. Stowell
Stowell Law Firm, LLC
350 Saint Peter Street, Suite 224
Saint Paul, MN 55102
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
A sole proprietorship cannot be a debtor under the Bankruptcy Code: you would have to file individually. Your business income, assets, and liabilities would count toward personal limits with respect to exemptions, the means test, rules relating to who can be a chapter 13 debtor, characterization of your debts (primarily business or personal), and other rules. You should to consult with a bankruptcy attorney. General answers on this Website are insufficient.
It depends on what your assets are. First, I'd want to know how you received a $35k personal credit limit on a credit card - that seems quite high. No business (unless it is a huge corporation like Target, etc.), has credit in its own name - you personally guaranteed this debt, so it's basically a personal credit card. Therefore, I'd want to know how it reached a $35k limit. That said, it also depends on what the card was used for and whether or not your business has any inventory, assets, etc. and what form your business takes - LLC, S-Corp, etc. Your personal assets will also come into play here, so you really need to sit down with a bankruptcy attorney and look at everything.
We can be reached at 507.334.0155 (Toll Free: 888.777.5009). Our web address is: www. corbin-law-office.com.
Answers on Avvo are not to be considered a response to a specific legal issue in a specific jurisdiction - they are to be considered only general responses to hypothetical scenarios posed by the questioner. For specific legal advice, please consult with a licensed attorney in your jurisdiction. No information contained herein should be construed as a solicitation for business, an offer to perform legal services in any jurisdiction in which the attorneys of Corbin Law Office are not licensed, or the dissemination of legal advice. No creation of an attorney-client relationship should be assumed or implied. We are a debt relief agency. Corbin Law Office helps people file for bankruptcy relief under the bankruptcy code.
Without more information, it is difficult to respond to this question, including what type of bankruptcy is right for you. I suggest you consult with a bankruptcy lawyer to determine what type of bankruptcy is right for you.