Legal Question in Bankruptcy in Pennsylvania

How will bankruptcy affect my business?

I have close to $20,000 in consumer debt. A credit card company gave me a $15,000 limit and as the 23% interest added up the minimum payment became more than my mortgage payment...I paid until I couldn't keep up with it anymore. I stopped paying all of my credit card bills about 3 years ago with the intent to file bankruptcy. I never did.

At this point creditors have stopped calling me and I have not been sued by anyone. Is there a time period that they have to sue me within? I'm considering filing to get a clean slate, but started a new business a year ago and I worry that it will affect my business partner.

If I do not file bankruptcy can these companies choose to sue me years from now? If I do file, how will it affect my new business?


Asked on 1/20/04, 11:23 pm

1 Answer from Attorneys
Matthew Nahrgang Nahrgang & Associates, P.C.

Re: How will bankruptcy affect my business?

There is a four year statute of limitations in Pennsylvania. A creditor may sue you up to 4 years after the date of the last payment. Of course, they may sue you after the time elapses, but you will have a good defense at that point. If you don�t defend yourself, even if it was past the time, the creditor can still obtain a judgment.

Whether or not your business could be effected depends on the nature of the business. If it is a corporation with few or no assets, there would be no effect. If it is a sole proprietorship, it depends whether you lease office space or have a store front.

In any event, it makes sense to file a bankruptcy from a credit perspective as it is easier for a future lender to interpret your credit report once all the debt has been discharged.

Feel free to call or E-mail me on a free initial basis.

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Answered on 1/22/04, 4:12 pm


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