Legal Question in Bankruptcy in New Jersey

I am considering Chapter 7 personal bankruptcy, due to overwhelming credit card debt. The issue is that I have a small business. It is a personal training business (LLC). I do not own the facility, I rent it. The equipment I have is technically owned by a family member as she loaned me the money and now I am paying her back. If I file for bankruptcy, will the LLC be affected?


Asked on 12/02/10, 11:29 am

1 Answer from Attorneys
Stephen Tsai Stephen Tsai Law Offices

The LLC is an asset that you must disclose on your bankruptcy schedules. The LLC's value is unknown, although if it's a personal training business, it probably has little value without you working for it. As for the equipment, you will have to double-check whether you own it or the LLC owns it or if your relative took title in her name. If the LLC owns it, the value of the equipment will be figured into the value of the LLC. As for your relationship with your family member, you will have to figure out if the documents indicate that she is a secured creditor (with UCCs), an unsecured creditor, or you have an installment agreement to purchase the equipment from her.

Read more
Answered on 12/07/10, 9:22 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in New Jersey