Legal Question in Bankruptcy in Alabama

business bankruptcy

i am a small business owner.my business has failed but i am still in debt with american express small business network.if i file bankruptcy for the business will it effect my personal credit.what will be the down side of doing this. would i have to appear in court. the loans from amx are unsecured. thank you--name removed--


Asked on 3/07/03, 11:31 pm

1 Answer from Attorneys
Sterling DeRamus Sterling L. DeRamus, Attorney at Law

Re: business bankruptcy

There is no simple answer to your question. Avoiding a stain on your personal credit history may be difficult through a business bankruptcy, and of course impossible if you personally file bankruptcy. Basically, those debts that are solely the businesses should not show up on your personal credit report. However, those debts that you personally guaranteed will. I believe AMEX requires personal guarantees for their debts so you are personally liable.

However, personal bankruptcy may be the most painless way out for you. Allowing the issue to drag on and on will only make it harder to deal with and delay the cleaning up of your credit report.

If you have any questions, please do not hesitate to call me at 458-1100.

Sincerely,

Sterling L. DeRamus

Attorney at Law

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Answered on 3/10/03, 10:28 am


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