Legal Question in Bankruptcy in California

Re: loan types

Definitely file jointly. There's no reason to pay 2 filing fees. The monetary judgments against the business (assuming it's a dba and not a corporation) should be dischargeable. You would have to list the business assets and try to exempt them. You might argue that the EOE loan is dischargeable. Secured debts are those that, if you don't pay under ordinary circumstances the lender can take back the item that secures such debt. Unsecured is where property is not pledged to secure the debt, i.e. a regular credit card or an "unsecured" line of credit. Good luck to you.

Re: loan types

You and your husband can file a joint petition under chapter 7. If your husband's business is a sole proprietorship, and not a corporation, he can include that in the same petition, and can include the judgments against the business. Be aware, however, that the assets of the business will become assets of the bankruptcy estate. I don't know what Equal Opportunity Employment is, but if it is simply a lender, that can also be included in the petition.

A secured debt is one where you have given a security interest in some item in return for credit. For instance, if you have a car and you are paying payments on its purchase, that is a secured debt, and if you do not make the payments the creditor can take back the car. An unsecured debt is where the creditor does not have a security interest in any item.