I am a partner in a small concrete business. We have closed the doors due to lack of new business. I have several credit cards in my name along with the company name on them. Can I file bankruptcy for these credit cards and not have it affect my personal credit?
-- Ray
A.
A bankruptcy filing must include all the debts you owe. The reasoning is that if all one's non-exempt property is to be liquidated for creditors, all of the debtor's creditors should get a chance to share. (In fact, the largest percentage of personal Chapter 7 cases are "no asset" cases, meaning there is no non exempt property and no dividend to creditors).
While for purposes of the means test, the distinction between consumer and business debt is significant, for all other bankruptcy purposes, a business debt is no different than a personal, consumer debt.
I remind clients that they must list all of their debts, even those that are non dischargeable and those they intend to repay.
