What does she do? Is a Bankruptcy Chapter 7 the answer if his business has failed?

It was the husband of a friend. A business where he hauled equipment for companies in the area. Everything was all right, or so she thought. Made good money. Had incorporated three years ago. Used credit cards. Some bills came to him as an individual, others to the company. Found out that some purchases (in the thousands) were NOT for the business, but were for furniture, and other items for the house. Business has now failed. Tens of thousands in debt. Can no longer pay credit card debt.

How does trustee of bankruptcy look upon debts that were incurred under a business account for example, the furniture?

Can he still file Chapter 7?

By the way they own a house. They are behind two months because he no longer has the income he once had. Had to get a job earning much less than when he had the business. They want to keep the house.

Any answers?

What does she do? Is a Bankruptcy Chapter 7 the answer if his business has failed?

The whole reason to incorporate is you are creating in the eyes of the legal system another individual seperate from yourself.

With that in mind, any debt incurred through the corporation is not personal debt, and can%26#039;t be part of a personal bankruptcy. The corporation can file bankruptcy...

So, if they file a personal bankruptcy, their bills in their names are the ones that are discharged. A homeowner%26#039;s home is exempt from bankruptcy action, but they still have to pay the mortgage or it will be foreclosed on, so they need to visit a good bankruptcy attorney who will guide them through the process.

What does she do? Is a Bankruptcy Chapter 7 the answer if his business has failed?

I%26#039;m not wrong on the house, there isn%26#039;t a state where they will force you to sell your home. Report It

What does she do? Is a Bankruptcy Chapter 7 the answer if his business has failed?

If the company was LLC then the home and bus finances should be seperate. If not then you are up the creek. Sorry.

Incorporated LLC= on it%26#039;s own. They should of been to a lawyer and would know if it%26#039;s LLC.