Legal Question in Bankruptcy in Georgia

Personal business guarantee

We operate a failing LLC business. There are several owners. I personally signed on a bank line of credit (not a loan against my home) and have a company credit card in my name based on my credit history. The company is about to close the doors and has no equity or assets. I have put a large amount of the debt in my personal credit which I know I am responsible for. If I file for Chpt 7 with no real assets will it also clear the company debts I signed on? Will it affect my husband that is not a co signer on any of my things but does have me an authorized signer on his credit cards? I am on our house jointly but do not want to include it in the bankruptcy which has little or no equity to begin with. Can I break free of the company mess without hurting my husbands credit? We are already extremely extended and can not take out additional loans to consolidate. Approx debt on credit cards is around 40K.


Asked on 1/29/09, 11:57 am

2 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Personal business guarantee

A Chapter 7 discharge generally discharges all debt of the debtor, including guaranteed debt. It does not discharge anyone else (incl. a business) who may also be liable for the debts. You have no choice about what to "include" in a Bankruptcy case. You schedule all assets and liabilities under penalty of perjury.

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Answered on 1/29/09, 12:02 pm
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: Personal business guarantee

Your post makes it sound like you may be a good candidate for bankruptcy. We'd have to see all the numbers, but it is veryu possiblke you could protect your home, discharge the business debt and not hurt your husband. Call me to discuss the details and see if this would work (assuming you are in metro Atlanta).

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Answered on 1/29/09, 12:12 pm


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