Business CC in Chpt 7 - any successes?

[ingrid29]

I will be filing Chpt. 7 soon and have both business and personal CC debt I plan to include. The business CC's, (as most are) were personally guaranteed by me so have both the EIN and my ss# on file. My attorney has said to include everything and see what happens. The business is still in existence but has almost no profits or assets. I plan to keep it open for now.

Has anyone filed 7 and had success with these types of CC being discharged without problems? Has anyone had the CC continue to try to collect from the business?

Any stories would be very helpful as I don't know what to expect.

[Chowder]

Sole prop?
I include my sole prop biz cards in my chapter 7. Nearly all of the CC debt was on the biz cards.

[jadams]

How is the business organized? (Sole Proprietor, Corporation, LLC)

Are there any partners?

You say no profits or assets -- but is there any type of income stream a creditor could get a court order to attach (bank account balances between payments to vendors and payroll, etc.)?

In my case since I'm a sole proprietor and was able to include what's left of the business assets in my exemptions, all the business debt gets wiped without anymore difficulty.

[HHM]

Strictly speaking...

The debt will be discharged as to you, but if the business is incorporated in some way (Inc., LLC, etc), then the business entity would still be liable.

[ingrid29]

It's a c corp, so a separate entity and not a sole prop. I guess then that the bankruptcy will cancel out my personal guarantee on the debt and they won't be able to go after me for that, but the biz will still be liable.

I actually was not going to include the biz debt. although I really can't afford to pay it, but the attorney told me to try so I stopped paying and am now really late. He said they may or may not come after the corp.

Should have asked if anyone other than a sole prop (inc. or llc), has included biz CC debt in a 7 successfully?

Kind of maddening since they won't give you a CC for a biz without the personal guarantee, so without that there would be no CC debt anyway.

[HHM]

Well, you must list the business debt if you have a personal gaurantee, you do not get to choose who goes in and who stays out.

[Calthius]

They will go after the business. You shouldn't have stopped paying on the business debt if you wanted the business to continue operation.

I included a couple of business CC and personal Guarantee's in our bankruptcy, however we had dissolved the business prior to filing.