Legal Question in Bankruptcy in Oregon

Re: Business

Your question raises a lot of issues that are impossible to answer without more detail, but I will do what I can to give you some general information. First, it may be possible to file the bankruptcy and complete the case before your husband takes over his father's business thus eliminating that issue. If your husband takes over the business (meaning he becomes the owner) and then files the bankruptcy the business may not survive the bankruptcy. The trustee may require the business to cease operation. Vendors or suppliers may be unwilling or unable to extend credit. One soluiton may be (if it isn't already)is to incorporate the business. A corporation is a separate legal entity and as such would be insulated from your personal bankruptcy. As to your house and cars this really depends on whether you have any equity in these assets and what chapter of the bankruptcy code you file under. If you have more than $33,000 of equity in your home you would probably elect to file under chapter 13. The Oregon exemption for vehicles is $1,700. Joint debtors in bankruptcy have two vehicle exemptions. Again if you have significant non-exempt value in these vehicle you would elect chapter 13 (this is where you propose a repayment of the debts based on your ability to repay). Without going over all the details of your financial circumstances I can not say whether a chapter 7 or chapter 13 is appropriate. However, based on your question I think it is advisable to retain an attorney to assist you.