If the debt is owned by the business, and not owned or personally guaranteed by the individual, and the company files for Chapter 7 bankruptcy the assets of the company will be sold to payoff creditors. If there are no assets, or not enough to payoff all creditors the court will look to various rules regarding the type of debts and the priority of the creditors. Each case is different, and needs to be examined individually. You should consult a creditor's rights attorney to determine your options.
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Answered on Apr 04th, 2012 at 1:45 PM