More details to this question:
My husband is one of three partners that built a home as a business deal. All three signed a personal guarantee on the loan. One partner has since filed personal bankruptcy removing herself from any remaining obligation. The home sold, but there is an outstanding balance due. If my husband has to file bankruptcy due to the LLC, do we both have to file bankruptcy? I did not sign the personal guarantee - I am not involved in the LLC at all. The LLC is now bankrupt and dissolved. Are there any other options we could look at for a resolution? We are trying very hard not to go the bankruptcy route, but feel it may be our only option. We are trying to save at least one of our good standing credit scores. Any advice you can provide would be greatly appreciated!
5 ANSWERS
Saying something is THE BEST OPTION with just the limited information you provided would be irresponsible for the attorney and is unrealistic for you. The first issue to consider is whether or not your spouse is even eligible to file bankruptcy. That is why he will need to meet with an attorney in person to review the exact financial data. In some instances, a settlement of this business guarantee would be possible, but the question will always involve the unknown issue of what the cost to settle will be. Most ethical bankruptcy attorneys do lay out the options and have no desire to talk someone into bankruptcy.
Answered on Jul 09th, 2015 at 2:29 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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If you didn't sign the personal guarantee, then there is no reason for you to go bankrupt.?
Answered on Jul 09th, 2015 at 12:43 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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In Wisconsin, a marital property (= community property) state, generally both spouses are liable on a debt if it is even broadly in the interest of the family. So even if you do not file a joint petition in bankruptcy, you get some of the protections that go with the bankruptcy discharge when your spouse receives it. But without either of you filing bankruptcy, then you are arguably both liable on the guaranty which he alone signed. Bankruptcy is a big step, but in my experience it is for many people a big stress-reliever. Consult an experience BR lawyer in your area.
Answered on Jul 09th, 2015 at 12:36 AM
Because your situation would be both a personal and business bankruptcy discussion, I charge for these consultations. Now is not the time to skimp. Pay an experienced bankruptcy lawyer for 90 to 120 minutes of their time to discuss all of your options. I have no less then 50 questions I ask before I can start giving advice. No different then a doctor taking a medical history. How is the doctor to know whether you can be cured with a couple of aspirin or need brain surgery without asking the right questions.
Answered on Jul 09th, 2015 at 12:36 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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It does not sound as if you would have to join your husband's bankruptcy based on the limited facts you have presented. Your other options depends on similar facts I would need to as well.
Answered on Jul 09th, 2015 at 12:24 AM