Legal Question in Bankruptcy in New York

Business Bankruptcy and Living Abroad

I will soon be closing down my own business and possibly declaring bankruptcy personally. I am in the US on an E-2 Visa and when the business folds I have to leave the US. I am wondering if my business debts/creditors can pursue legal action/collections against me if I am living in another country after the bankruptcy is filed?


Asked on 4/25/06, 12:13 pm

1 Answer from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: Business Bankruptcy and Living Abroad

The answer to your question depends on the country to which you will return. Some countries allow civil suits (money judgments) to follow individuals, and respect the judgment of a US court; others do not.

If your business is a separate entity (LLC, corporation, ...), and you have treated it as such (no commingled funds, for example), then the business's debts may not follow you personally. However, if you have given personal guaranties of payment, those are likely to change into personal debts when your business closes, even if you have treated your business as a separate entity.

If you wish to discuss your situation further with me, feel free to contact me directly.

The information given here is general in nature and should not be construed as legal advice. For advice about your specific situation, consult your attorney.

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Answered on 4/25/06, 12:32 pm


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