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. Please be aware that each answer on this website is based upon the facts, or lack thereof, provided in the question. To be sure you get complete and comprehensive answers, based upon the totality of your situation, contact a local attorney who specializes in the area of law that involves your legal problem. Diane L. Gruber has been practicing law in Oregon for 26 years, specializing in family law, bankruptcy, estate planning and probate. Note: Diane L. Gruber does not represent you until a written fee agreement has been signed by you and Diane L. Gruber, and the fee listed in the agreement has been paid.
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 communicate general legal information and am not representing you (and am not your lawyer). Do feel free to call me at 404-768-3509 if you wish to discuss actual representation (the phone call also does not retain counsel; that requires an office visit and appropriate paperwork). In that a forum such as this provides me with limited details and doesn't allow me to review details and documents, it is possible that answers here, while meant to be helpful, may in some cases not be complete or accurate, and I highly recommend that you retain legal counsel rather than rely on the answers here. (You can also email my office at email@example.com . An email also does not retain my office, but can help you get an appointment set if you prefer not to call). I am happy to discuss possible representation with you. Any information in this communication is for discussion purposes only, and is not offered as legal advice. There is no right to rely on the information contained in this communication and no attorney-client relationship is formed. Nothing in my answer should be considered as tax-advice. To ensure compliance with IRS Circular 230, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein. I am also required to advise you, if your question concerns bankruptcy, that the U.S. Congress has designated Ashman Law Office as a debt relief agency that can help people file bankruptcy.
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.
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, Duluth, Alpharetta, Buckhead The above answer is for general information purposes and is offered as a service to the public. Nothing on this or associated pages, documents, comments, answers, reviews or other communications, including the above post, should be taken as legal advice for any individual case or situation or relied upon as a substitute for engaging legal counsel, nor does it constitute advertising or a solicitation. Viewing the general information here, including your receipt or transmission of information hereof does not alone create or constitute an attorney-client relationship or ensure confidentiality. Please contact 770-309-9551 for additional questions or to schedule for your free phone consultation. If this question or answer pertains to bankruptcy, please be advised that we are a federal debt relief agency. One of our areas of practice is to help people file for bankruptcy relief and protection under the U.S. Bankruptcy Code.
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 your important decisions, please contact our office directly for a free phone or in person consultation. Robert M. Gardner, Jr. Hicks, Massey & Gardner, LLP firstname.lastname@example.org 53 W. Candler St. Or 718 Oak St. Winder, Ga. 30680 Gainesville, Georgia (770) 307-4899 (770) 538-0555 gadebtlaw.com hicksmasseyandgardner.com serving metro Atlanta and all of Northeast Georgia Bankruptcy, Divorce, Personal Injury, Worker’s Compensation, Medical Malpractice, Adoption, Civil and Criminal Litigation