Legal Question in Business Law in Indiana

bankruptcy

I have been 49% owner/partner in an S corp. Partner dishonest with cash flow/used company $ for personal use. I ran up charge care debit in my name only(not company)to keep company afloat and I also co-signed w/partner for 2 lines of credit. Company debt = $110,000 with my name personally guarantee. I left 1 year ago--partner is paying required minimums on above and business is barely afloat(short paid one month). My credit stinks, should I file bankruptcy to close this chapter in my life--will my husband be affected if I file on stuff in my name only? We own everything joint w/50,000 equity in our home?? Suggestions please help???


Asked on 9/11/03, 9:35 pm

1 Answer from Attorneys
C. David DuMond Law Offices of David DuMond

Re: bankruptcy

A bankruptcy case could provide you with some relief, but if your home is securing the business debt, then those secured creditors may be able to enforce their loans at least to the extent of the equity in your home. If your home was not put up as collateral, then you have better prospects. Your husband will not be directly affected by your bankruptcy, but he will likely experience relatively minor "collateral damage" if he is a joint debtor on any of your accounts. Overall, your situation appears way too complicated to provide a ready answer over the internet. I strongly recommend that you confer with a lawyer. Contact your local bar association for a referral to an attorney with experience in bankruptcy and creditors rights. Many attorneys, including me, provide a free consultation.

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Answered on 9/12/03, 8:36 am


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