I am one of three partners in a LLC, will chapter 7 bankruptcy protect me from business credit card debt if i am the guarantor for the account?
Hi,
Consider this a two sperate liabilities. In a Chapter 7 business bankruptcy, the LLCs assets are sold and used to pay the LLC’s creditors. After the bankruptcy, the LLC’s remaining debts are wiped out and the LLC is no longer in business. The LLCs owners are generally not responsible for the LLCs debts. If, however, an owner has personally guaranteed debts and cannot repay them then the owner may have to file as well.
You should discuss with a bankruptcy lawyer in your area.
Hi,
Consider this a two sperate liabilities. In a Chapter 7 business bankruptcy, the LLCs assets are sold and used to pay the LLC’s creditors. After the bankruptcy, the LLC’s remaining debts are wiped out and the LLC is no longer in business. The LLCs owners are generally not responsible for the LLCs debts. If, however, an owner has personally guaranteed debts and cannot repay them then the owner may have to file as well.
You should discuss with a bankruptcy lawyer in your area.
