Question: My business has too much debt. We are being sued by creditors and other creditors are preparing lawsuits against us right now. Creditors are calling all the time and they are not giving us anymore time to pay our debts. So we are considering bankruptcy.
I opened a contracting business but some of my partners have been bad and the business has suffered. I need to get rid of the debt before any assets are seized. The business started well but I took on too much work and got overwhelmed. Then I couldn't meet schedules and we got fired from some major jobs.
The debt is all in the business, which is located in Sandy Springs; I also live in Sandy Springs with my wife and 3 dogs.
I don't have any personal debt form my creditors. I knew the creditors before so they extended credit to me based on our prior relationship which was very profitable to everyone involved.
If all the debt is in the business name, do I need to file bankruptcy personally? I just want the business to file, not me personally.
D.F. in Sandy Springs
Answer: Your business can file bankruptcy and you do not have to. A business can file a bankruptcy without the need for an owner, officer or partner to file personally.
Many owners of small businesses have to use their personal credit to guarantee debts like loans and credit cards. But if the debt is not personally guaranteed by an individual, then there is no need to file a chapter 7 or chapter 13 personal bankruptcy.
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