Legal Question in Bankruptcy in Minnesota

I want to file a chapter 7 for my business but all the debt is basically unsecured and on my personal credit card. Can a chapter 7 business filing allow me to discharge the business debt personally guaranteed by me. I am sure it will affect my credit but I just want to get rid of the debt. - Mike


Asked on 10/05/10, 12:48 pm

1 Answer from Attorneys
Sam Calvert Calvert Law Office

A bankruptcy (generally) discharges only the debt of the person who files bankruptcy. So, first question: is your business you (a sole proprietorship or d/b/a) or is it a separate "legal person", such as a corporation. If it is a corporation, if the debt is owed by you, but the corporation files, your debt will not be discharged. In addition, corporations don't get discharges in a chapter 7. So, this likely will likely not work. If it is a sole proprietorship, and you file, then the question gets to be the net value of the assets of the business. You do not say where you live -- consult an experienced attorney near where you live. Or come to St. Cloud!

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Answered on 10/10/10, 3:20 pm


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