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Does a personal bankruptcy eliminate a personal guaranty on business debt?
Wiki User
∙ 14y ago
Yes. I filed for that reason alone. I signed a lease for a business. I was told I had to sign a personal guarantee. I had to file a personal BK because of it. When I left the lease they tried to sue the business....but the business had nothing, so they came after me because I signed a personal guarantee. I filed a Bankruptcy and it was discharged.
Wiki User
∙ 14y ago
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Does business bankruptcy affect personal credit?
If your business is tied to your personal credit, then yes, you run the risk of being personally affected by the business's bankruptcy.
If your company declares bankruptcy does this discharge your guaranty?
If the company is a corporation and you personally guaranteed the debt, the corporation's discharge of its debts does not discharge your obligation. If the company is you as a "DBA" then more than likely the discharge of the DBA (doing business as) discharges your personal guarantee.
Does personal bankruptcy effect business credit?
In a Proprietorship, the personal bankruptcy of the proprietor may cause shut down of business. Whereas in Partnership and Joint Stock Companies, bankruptcy of Partners, Directors effects business credit immensely as bankers become shy in extending further credits to the company.
What is personal Bankruptcy?
It is when an indivdual (or married couple) file for bankruptcy rather than a business or corporation.
Can you own your own business while going through bankruptcy?
Depends on the type of bankruptcy you are filing. Generally a personal bankruptcy does not effect your business, and vise versa. However, if your business is filing bankruptcy, a Chapter 11 reorganization will allow you to stay in business.
What kind of services do business bankruptcy lawyers offer?
A business bankruptcy lawyer can guide your business through the bankruptcy process, and ensure that you can maintain as much of your assets as possible while undergoing the bankruptcy process.
Can you obtain a business loan after personal bankruptcy?
A personal bankruptcy can remain on your credit history for up to 10 years, which can make it difficult to get a business loan; however, if your business credit is established as a completely separate entity from your personal credit, you may increase your likelihood of getting a business loan.
In order to file bankruptcy must you have a bankruptcy attorney?
If you are filing for personal bankruptcy it is not necessary to have a lawyer. If you are filing for business bankruptcy, you must retain a lawyer on your behalf.
If you file bankruptcy for your business will they take your personal tax refund?
If your business is a separate corporation or entity, no.
Can you include a personal lawsuit in a ch7 bankruptcy?
I have closed a business and gone through a divorce leaving me with an unpaid lease of $5,000 and unpaid lease on the business location. Can these be included a bankruptcy?
If you file Bankruptcy on your business can they take your personal assets?
Only if then can show that you committed fraud, by piercing the corporate veil (i.e. using the business as your personal property), or if you gave a personal guarantee for business loans/debts.
What is your liability of paying back a business credit card if it had a personal guaranty attached to it and the company has gone out of business?
You are completely liable. That's the point of the personal guarantee. When you agreed to that you destroyed the concept of a corporate shield and are completely liable for the debt.
