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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.

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โˆ™ 2010-02-04 16:01:56
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Q: Does a personal bankruptcy eliminate a personal guaranty on business debt?
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Related questions

Can a bankruptcy lawyer assist with personal and business bankruptcies?

Yes, a bankruptcy lawyer can assist with personal and business bankruptcies if you file for Chapter 7 bankruptcy.

If you file business bankruptcy do you also file personal bankruptcy?

If your business is a separate entity, no.

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.

Does business bankruptcy effect 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.

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 is personal Bankruptcy?

It is when an indivdual (or married couple) file for bankruptcy rather than a business or corporation.

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.

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.

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.

Can you open a new business if you file for bankruptcy personal and business bankruptcy?

I suppose you could, but even if you did manage to get the financing together to open another business, any profits from it would be subject to seizure by the court and the bankruptcy trustee to pay off the bankruptcy judgement. There is no bankruptcy "judgment." If the bankruptcy is over and you have your discharge, you can open a business, and any money you make is yours. Providing the first bankuptcy is discharged.

Will a business bankruptcy affect your personal credit?

If your business credit is established as a completely separate entity from your personal credit, then you can reduce the risk of having your personal credit and assets affected by a business bankruptcy. One of the best ways to establish business credit is to register to receive a D&B D-U-N-S® Number.

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.

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?

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.

After filing bankruptcy how long before it is final?

Personal? Business? Chapter 7? 11? 13?

One spouse file bankruptcy?

Business bankruptcy? The other spouse will probably not be liable unless their name appears as an officer of the company. Personal bankruptcy? Yes, it will probably affect the other spouse.

If you file bankruptcy because of personal debts related to your business then sell your business after the bankruptcy can the courts take your proceeds?

== == YES. All of your property is considered in a bankruptcy. Your creditors have every right to get at ALL of your property including your business assets. I would be very surprised if the court didn't order the sale of the business to satisfy the creditors demands.

Will filing bankruptcy eliminate criminal court fees?

If you are sued and a creditor gets a judgment against you, you may be able to discharge your personal liability on that judgment in a Chapter 7 bankruptcy. This will depend on whether the underlying debt is dischargeable (meaning you can wipe it out in bankruptcy) or nondischargeable.

Can a business file for chapter 7 without a lawyer?

If the business is a sole proprietorship, yes, since the bankruptcy is personal. For corporations, LLPs and LLCs, no.

If someone owes you money and you have a promissory note for both their business and personal assets can you go after them for personal bankruptcy?

I'm not certain what youmean by "go after them for personal bankruptcy." If you mean can they be included in your bankruptcy filing as a third party who owes you money,they might be claimed as assets to be collected. If you mean can you file a petition to be excluded from their BK and then pursue a lawsuit, you can, but it is doubtful it would be granted. Usually only secured creditors are allowed that option.additionI assume the business has a debt towards you and the business' owner has guaranteed this loan. In such a situation, you should ask the money back from the business and if the business fails to do so (on first request) you can go after the owner. If the owner is not willing or capable of paying you can go after him for a personal bankruptcy.

Will a judgment be dischared if you go bankrupt?

This really depends on whether the judgment is a dischargeable debt in bankruptcy. There are some debts that you cannot eliminate in bankruptcy and they will continue to exist after the bankruptcy. Generally judgments from credit cards, medical bills or personal loans can be discharged but they can become non dischargeable if the creditor claims fraud or misrepresentation within the bankruptcy.

Your business is going under you would like to pay off the loan which has a personal guaranty before you pay off other unsecured debt holders or vendors is this acceptable?

You can payoff whoever you want and in what order you want to unless you have filed BK (Bankruptcy). At this point the Bankruptcy Court will instruct you and your attorney, who will get what money there is left to pay down debt. Goodluck to you and remember if BK is filed it won't matter about your personal credit score for 7 years, it will all be affected whether you payoff a personally guaranteed loan or not. Sincerely, Val

What does the term 'corporate bankruptcy filing' mean?

Corporate Bankruptcy Filing is the name given to the process when a business becomes insolvent and unable to meet their debt commitments. This is in contrast to personal bankruptcy where an individual becomes insolvent.