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Will My Business Debt Be Included in My Bankruptcy?

If you are filing for a personal bankruptcy you may also own a business that is in financial trouble as well. Whether this will be included in your bankruptcy will depend on whether your business is incorporated or not. 

Considerations

If it has been then it considered to be a separate legal entity and will not be included in your personal bankruptcy filing. You would have to file a separate bankruptcy for your Corporation. If you are the sole proprietor of your unincorporated business then its debt may be included in your personal filing. Keep in mind that the assets of the business will also be included in your personal bankruptcy. Your New Albany bankruptcy lawyer will help you determine which form of bankruptcy is most applicable to your situation.

It may be Chapter 7 or Chapter 13 and your business debts will be dealt with according to rules of which chapter you are filing under. If you do own a Corporation that is in financial difficulty as well then you will have to file a separate bankruptcy under Chapter 7, as Chapter 13 is not applicable. You should begin to get some immediate relief from creditor actions regarding your business through an automatic stay until the courts are able to deal with the bankruptcy. This is a short term temporary fix however, and your will need to follow the advice of your attorney as your bankruptcy progresses.

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