Legal Question in Bankruptcy in Iowa

Re: personal bankruptcy

Short answer -- if your business is incorporated it will not be difficult for you to file individually.

Bankruptcy law requires that all of you debts be listed. Therefore if you operate as business as a sole proprietorship the debts of the business are essentially your debts. If you never incorporated your business (or formed an LLC) then you are personally responsible for the business debts and they must be listed. However, if you wanted to keep the business going I believe it would be possible. This would take some careful strategy and planning on the part of you and your lawyer. Basically you and/or your lawyer would inform the business creditors that you are filing personal bankruptcy with a phone call or letter. Let these creditors know that you are planning to make arrangements to pay them in full once the bankruptcy case is concluded (approx. 5 months). ph (800) 303-0720