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If an LLC is filing bankruptcy can the members be affected and to what degree especially in the case that the members personally guaranteed the lease and bank loans etc?
Wiki User
∙ 14y ago
Peronal guarantees obviously put you on the hook personally, and the lender would look to you to recover any loss from the BK loan. Otherwise, officers and directors are generally protected from the debts of the company (up to the amount of their equity in the company, whih may well be used to satisfy debts), except for some special things, like trust fund taxes - sales and payroll taxes generally - that carry personal liability.
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.
Is a 401K affected by bankruptcy?
No. It is protected by law.
How long are you affected by bankruptcy?
depends on the state
If a pastor files for bankruptcy can the church fund be affected?
If the pastor files for personal bankruptcy, no - the church fund can't be touched. If he files bankruptcy ON BEHALF of the church, then any and all funds and assets of the church can be affected.
Can a federal pension be affected by bankruptcy?
Federal or private...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.
Is a discharged debt for hardship or disability considered a bankruptcy?
No, discharged debt is considered a forgiveness of debt and not a bankruptcy. Bankruptcy can only happen as a result of bankruptcy court procedure. Certain loans can be discharged due to hardship or disability, especially if there is an insurance policy in force to cover such a situation. When a loan is forgiven due to hardship or disability, the debtor's credit rating is usually not affected.
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
If a business is filing bankruptcy can the principals be affected?
Yes. First, if it isn't an Incorporated business, they most likely are completely totally involved (as the business is normally simply them personally really). And of course, if it is a Corp, the officers may be personally liable for some things...sales and payroll taxes most notably.
How is your credit affected by a chapter 13 bankruptcy verses a chapter 7 bankruptcy?
Both have the same negative impact on your credit.
Will your credit rating be affected by your partner filing bankruptcy?
If your partner files for bankruptcy and you don't then the bankruptcy will not appear on your credit report. But you will be partly responsible for before bankruptcy filing. Generally filing bankruptcy will affect the credit rating of the individual who filed it.
Will a cosigner's credit be affected if they cosign for someone who has a bad credit score because of a Chapter 7 bankruptcy?
The cosigner's credit will only be affected if the person that they cosign for defaults on the loan. The bankruptcy will not affect the cosigners credit.
