Legal Question in Bankruptcy in New Jersey

Re: how does filing affect my business

I assume you are referring to a Chapter 7 as opposed to another form of personal bankruptcy (chapter 11 and 13). Your partnership interest, ot alternatively, your stock interest, in a business is an asset of your bankruptcy estate. Subject to the kind of business it is and the kind of assets it owns, if the value of your ownership interest has a realistic net liquidation value after any exemptions you can claim in your personal bankruptcy, then a trustee may potentially look to that value on behalf of creditors of your bankruptcy estate and try to get you to redeem your interest for some monetary sum.

Re: Personal liability for partnership debts

If you have an unincorporated business, that is, if you are running it as either a sole proprietorship or as part of a partnership, you are personally liable for all business debts (with your partner(s) if you have one/them). Incorporating now will probably not be of much help because the bills were incurred by you prior to the incorporation. You should probably be more concerned about what they will take from you personally. This is a big issue that I really cannot go into in a brief email response. The answer can only be given after a careful review of all factors.

Keep in mind that this advice is based purely on the little bit of information that you have given to me. There may be other factors that would change my opinion. Further, no one can rely on advice from an attorney who has not been retained. Since it appears that you have not retained an attorney, before you take any further action, you should contact an attorney (either me or someone else) to discuss your matter in more detail. Only then will you be able to rely on the advice. I will be happy to assist you. However, you need to call me at 856-546-8010. If you mention LawGuru, there will be no charge for your first consultation. Good luck! Rob Gleaner