If you are a individual ( husband & wife), and own a business under wife's name, would filing personal bankruptcy include your business ( as far as protection of bankruptcy go) Or do you have to file separate bankruptcy for business? Here is what is going on. My husband rented a place for business, and breached his lease due to his hot headedness. The landlord is threatening to file suit to seek damages as he was not able to re rent it. I run my own business but husband is not on that. My name was on the lease (that my husband breached) too. So, If the landlord suit, what would happen to my business if we file personal bankruptcy? Can its asset be sold too?

Is your business incorporated?

No, it is sole properietorship

Then the answer is yes, your business would be fair game for any attempts to collect a judgment, if one is awarded.

You should incorporate to protect it, hopefully, before the law suit hits.

Are you planning to wait until you are sued to file the bankruptcy?

If you file, and it gets dismissed prior to this suit being filed, then you will have no way to escape a judgment if one is awarded for this case.

Quote:

---

Originally Posted by progunr

Then the answer is yes, your business would be fair game for any attempts to collect a judgment, if one is awarded.

You should incorporate to protect it, hopefully, before the law suit hits.

Are you planning to wait until you are sued to file the bankruptcy?

If you file, and it gets dismissed prior to this suit being filed, then you will have no way to escape a judgment if one is awarded for this case.

---

So, If I read your response right, I should wait till the landlord file a suit & then file for Bk. What is the cost of typical personal bk? We refinanced our home last year & took some money out for my husband to start another business? If we file, do we need to account for that money as to what we did with it? Would it be considered assets if it is in Bank?

Well actually you and your husband should try and work out a payment agreement and pay them, if you let it go into default, it will ruin his and your credit both, since you are on the lease.

If your husband has another business, that is possibility liable also.

And if you incorporate now, ( after the debt is owed) they may try and show that this was done merely to hide the business.

You need a good attorney to go over all of this

Quote:

---

Originally Posted by imlaw

If you are a individual ( husband & wife), and own a business under wife's name, would filing personal bankruptcy include your business ( as far as protection of bankruptcy go) Or do you have to file separate bankruptcy for business?... if we file personal bankruptcy? Can its asset be sold too?

---

Two issues at the outset: 1) whether to file bankruptcy; and 2) when to file. I read to the end and note that you have not incorporated. What you have to do is sort through 'husband's' debts, property, and income; and 'wife's' debts, property, and income. Some debts, property, and income may be 'joint'. The analysis of your case must be looked at, inside and out; and you must determine what you hope to accomplish by filing bankruptcy. My guess is that you must be concerned with a lot more debt than the rental property. However, if the rental is all you are hoping to discharge, you may be better-off to work out a consent agreement to compromise and settle the debt.