Can you pick and choose debts to file for bankruptcy on?
Michael asked:
I own a business and am incorporated. I am considering filing bankruptcy but don’t want to include my personal debts (car payments) because I will pay those without disruption simply by getting a job. I want to find out about my business debts and if I can file bankruptcy on those and not involve my personal finances. I rent an apartment and pay car payments and do not outright own anything.
I own a business and am incorporated. I am considering filing bankruptcy but don’t want to include my personal debts (car payments) because I will pay those without disruption simply by getting a job. I want to find out about my business debts and if I can file bankruptcy on those and not involve my personal finances. I rent an apartment and pay car payments and do not outright own anything.
If you declare bankruptcy for the business, it has no effect on your personal finances. That’s one of the reasons you incorporate a business, to keep its assets and liabilities completely separate from your personal ones.
Comment by MOM KNOWS EVERYTHING — October 25, 2009 @ 2:30 am
If your business is filing bankruptcy, it has nothing to do with your personal assets (that’s why you incorporated). If you put the vehicle in the business name, then you cannot exclude, although you can work out a payment plan for the vehicle.
Comment by girlwhoknowsitstrue — October 30, 2009 @ 10:22 pm
Are you filing personal or corporate bankruptcy?
Remember, a corporation is a separate legal entity and if you set it up and maintain it correctly(keeping finances separate, filing separate tax returns, keeping minutes of meetings, etc) very few, if any, of your personal assets should be involved.
If you have not been keeping up with the corporate details there is a good chance of your debtors piercing the corporate veil and attaching personal property.
I would suggest talking to a good bankruptcy attorney on this one.
Comment by Jim R — October 31, 2009 @ 6:49 pm
I’m pretty sure the others are right about your business debt and personal debt being seperate. The only thing I wanted to add, was that even if you do have to declare all of your debts, all it means is that you are not obligated to pay them back. It does not mean that you can’t. You can still pay off anything you want even if you’re not obligated to.
My friend closed a business and filed on his business, and kept his car payment and codo. I’m pretty sure he had to close his credit cards, but they may have been linked to his business.
Comment by Ellie04 — November 3, 2009 @ 8:54 pm
It is against the law for you to pick what debts are to be payed. Bankruptcy law is very complicated. I highly suggest you get a good attorney and follow his advice.
Respectfully, I have to add Ellie04 is definitely mistaken. You have to pay the creditors the court says you are responsible for. You cannot, at least legally, pay whomever you want to.
again, I suggest an attorney
Comment by albuff — November 6, 2009 @ 1:14 am
I would recommend that you consult this website…
They also have an advanced bankruptcy strategies pages for members. Membership is only $80 a year…which is cheap compared to the $300 an HOUR that an attorney will be charging you for advice. It’s always best to go in with some knowledge so that you can ask intelligent questions instead of paying 300 bucks and hour while they answer them for you.
Comment by nickdc1960 — November 9, 2009 @ 10:11 am
Yes,you can.I did it last year.Contact your local Attorney,they will answer all your question and help you.Good Luck
Comment by orlandosaigon — November 10, 2009 @ 7:09 pm