Legal Question in Bankruptcy in California

Bankkruptcy

I own my own businesses. Total of three. Two of them are sole proprietor and one is a coorperation. I have combined debt of unsecured on credit cards for aprox 200 thousand and line of credit also unsercured for aprox 200 thousand. I need to know which bankcrupty would be good for us where we wipe out the debt and at same time try to same our asset. Again this is a plan i am thinking off since my business are slowing down from this economy and the income is not suporting the dept. So far i have not been late on any payments.


Asked on 4/30/08, 5:32 pm

1 Answer from Attorneys
Judith Deming Deming & Associates

Re: Bankkruptcy

All three businesses will likely be treated as though they are your personal debts (sole proprietorships and close corporations will be treated as same). You need to get a bankruptcy attorney. Generally, you do not "wipe out" any debt in any bankruptcy except chapter 7 and then only if the debt is unsecured and there are no assets which can be sold to pay any portion of that unsecured debt.

Read more
Answered on 5/01/08, 11:52 am


Related Questions & Answers

More Bankruptcy Law questions and answers in California