Bankruptcy Business and Personal

Letter to “Ask Leon”

Several years ago I started a small business (as a sole pr./dba) about 3yrs ago I changed to an S-Corp. Well now the store just isn’t making it. I have a really large amount of dept in personal credit cards. I will probably have to do a personal bankruptcy too. My business bankruptcy lawyer says it’s almost impossible to separate the credit card dept. I’d rather discharge the business debits on the credit cards with the business closing/bankruptcy. Do you see another option? I’m in Indiana.

Leon Says…

I am sorry to hear that your business was unsuccessful. Financing a business with credit cards is always a risky proposition. I really can’t answer a question like this without the benefit of an in depth personal consultation. For example, I don’t know your personal financial situation. Therefore, I am unable to say if a bankruptcy will help you or hurt you. Please get a second opinion from a good local bankruptcy attorney.