Legal Question in Bankruptcy in Michigan


if you are declaring a business bankruptcy do you lose all your personal assests too?

Asked on 7/05/09, 11:31 am

2 Answers from Attorneys

Kimberly Redd Redd Law, PLC

Re: bankruptcy

You don't necessarily lose assets in bankruptcy. The effect of a business bankruptcy depends on how you structured the business. Is it a corporation or LLC? If so, it doesn't affect your personal assets. Feel free to contact my office if you have additional questions.

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Answered on 7/05/09, 11:55 am
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: bankruptcy

What happens to your personal assets depends on the structure of your business. Assuming you are a sole proprietor (because it is rare for an incorporated business or llc to file a chapter 7 because they do not get a discharge) and file for the business, your personal assets and debts are also affected. Does this mean you lose all your personal assets? No, you have a certain amount of exemptions, but how much you get to keep depends on how much you have versus exemptions. I would be happy to talk to you about your situation to help you have a better understanding of what will happen if you file bankruptcy for your business.

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Answered on 7/05/09, 5:33 pm

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