Legal Question in Bankruptcy in Texas

personal bankruptcy

I haved owned my own business for 3 years now and my wife has owned her own business for 1 year. In starting the two businesses we have fallen behind on all of our credit cards and some other small loans which we had before starting our businesses. My question is: Can a couple file for personal bankruptcy without it affecting either one of our businesses?


Asked on 7/29/03, 11:56 am

2 Answers from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

Re: personal bankruptcy

More than likely you would have to file a chapter 13 case if you wanted to keep the businesses you referenced as going concerns. In chapter 13 you would reorganize your debts and submit a proposed plan to repay a percentage of the debts you have incurred. There is quite a bit of strategy involved. I would be happy to speak with you about your situation in more detail. Please call me at (214) 979-7330.

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Answered on 7/29/03, 5:58 pm
Michael Dover Michael A. Dover, PC

Re: personal bankruptcy

If the businesses are sole proprietorships, then no. In a chapter 7 bankruptcy, the business would become an asset of the bankruptcy estate and would be liquidated by the trustee. In a chapter 13, you could continue to operate the businesses and use the income from the business to fund your chapter 13 plan. If the businesses are in an entity (corporation, partnership, limited liability company), then the business itself would not become an asset of your bankruptcy estate, only your ownership interest in the business (your stock if it is a corporation, membership interest if it is a limited liability company, partnership in a partnership) become assets of the bankruptcy estate.

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Answered on 7/29/03, 12:07 pm


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