Legal Question in Bankruptcy in Illinois

Re: I own a sole proprietyship business with my husband

Generally speaking, there is no legal seperation between you and your business when it is a sole corporation. That means it is possible that you loose your house. The Bankruptcy code does allow some exemptions, such as $7,500 in real property, but chances are that you above that. If you do decide to file for bankruptcy you need to decide if you will file a "Chapter 7", which is basically a liquidation of all your assets to pay off debtors, or a "Chapter 13" which is where you propose a plan to pay off your debts with your future income. In a Chapter 13 you will still be able to own and operate your business and pay off your debts over time. But of course your debt must be small enough to be able to do so. But just remember that bankruptcy is the last resort. If you can work things out with your creditors or find some way to pay the debts off in the next 5 years or so, then I would go that route.

Of course this is just a general opinion and should not be construed as legal advice rendered. A meeting with an attorney should help you decide the proper actions.

Re: I own a sole proprietyship business with my husband

The question of whether an indvidual will lose their home if he or she files a Chapter 7 depends generaly on two factors 1) how much equity is in your home and 2)whether you are current on your mortgage. As the previous attorney stated each individual debtor is allowed a $7,500 exemption under IL law.