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Can I file business bankruptcy and save my personal credit?

1 Answers. Asked on Sep 10th, 2017 on Bankruptcy - California
More details to this question:
If I used my personal assets, home equity, credit cards for my business, can I somehow transfer all this debt to my business and then file a business bankruptcy without affecting my personal credit or assets?
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Answered on Sep 11th, 2017 at 11:28 PM

First of all, what type of business are we talking about here?  Is this a corporation? Partnership?  Sole proprietorship?  If it is the former two, there is no discharge of debts in Chapter 7 for corporations or partnerships, so unless you're talking about doing a Chapter 11 reorganization (which costs between $25,000-$100,000 in attorneys fees), then you're out of luck.

Second, you can't transfer debts. (Maybe this should have been first).  You're either personally liable for the debts or you're not.  Why the debts were incurred is irrelevant.  And unless the creditors each agree to have a 3rd party (in your case, your "business") substitute in as the obligor on the debts in your place (something I've never heard of happening) then what you're suggesting is not going to happen.

Sounds like you are in need of a consultation with an experienced bankruptcy attorney who can explain all your options to you after getting the necessary information.

In the meantime, the following link may be of use to you: https://www.bklaw.com/business-bankruptcy/

 

 

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