Legal Question in Bankruptcy in Texas
Small Business Bankruptcy
I have a business that is not incorporated it is a DBA. American express gave that buisness a $20,000 line of credit at start-up. We used that line of credit for business travel, equipment, etc. The business has since gone under and american express has come after us personally. They have told us that if the business declares bankruptcy we will not be liable for the line of credit. Is that true? and can a business that isn't incorporated file for bankruptcy protection. The business has no assets, and just this debt.
Asked on 6/27/00, 12:55 pm
1 Answer from Attorneys
Barry Jorgensen
The Law Office of Barry S. Jorgensen
Re: Small Business Bankruptcy
Yes. But since that is true you may be able to negotiate with American Express for a reduced amount and installment payments to eliminate the debt.
Answered on 9/05/00, 7:40 pm
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