Can I Include My Business Debts In My Chapter 7 Bankruptcy?

19 Jan Can I Include My Business Debts In My Chapter 7 Bankruptcy?

I am seeing more and more small business owners that are in need of filing a personal bankruptcy?

In the case of a small business owner filing a Chapter 7 bankruptcy, the question I hear most often is whether the small business owner can discharge his business debts?

Generally speaking a small business owner can discharge his obligation on the business debts when he files a Chapter 7 bankruptcy.

In the purist sense, the small business owner is not discharging the business debt. The small business owner is discharging his personal obligation to pay the business debt.

Even when banks lend to small business owners, it is rare that thebank will lend money to a small business without the owner personally guaranteeing the loan.

A Chapter 7 bankruptcyallows a small business owner to discharge his personal obligation to pay the small business debt: The debt continues to exist, but the lender can only recover from the business, not the business owner.

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I've been a consumer bankruptcy lawyer for nearly 25 years. Since that time I have helped many people resolve their financial problems. I have been practicing law since 1986 and I am licensed to practice in all state and federal courts in the State of Louisiana. Because I am a sole practitioner, you know that your debt matters are being handled by me personally. In addition to my work with consumers, I am also frequently asked to speak at local seminars on bankruptcy law. I am member of the following organizations: • Louisiana Bar Association • National Association of Consumer Bankruptcy Attorneys • Bankruptcy Law Network My office is located at: 3920 General DeGaulle Drive, New Orleans, LA 70114 Telephone: (504) 368-4101

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