Legal Question in Bankruptcy in Michigan

Filing on Corporation partnership which was only with family members

My mother and brother formed a corporation to build a night club together. She is 72 and non employed. She has only limited income and saddled with the debt of the bussines plans and a second mortage that was used as front money. Which section should she take? Ch 7, or Ch 11. If she did not have this debt she will be able to pay her other bills. (Utilities, and a credit card). She thinking of selling her house to get out from this debt.My brother has signed off on the bussiness and accepted his loss. He is 35.


Asked on 11/29/01, 7:44 pm

1 Answer from Attorneys
Don Darnell Darnell & Lulgjuraj, P.C.

Re: Filing on Corporation partnership which was only with family members

Ch. 11 is for business reorganization - and it sounds like your business has failed and is closed. I can't tell if your mother would be a candidtate for a chapter 7 or maybe 13 with the facts that you presented.

I would be willing to discuss a possible bankruptcy in further detail if your mother resides in SouthEast Michigan or further west to Jackson.

Don

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Answered on 11/30/01, 2:22 pm


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