If a debtor of mine filed for Chapter 7 protection on his personal debts, does this protect his business assets?

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If a debtor of mine filed for Chapter 7 protection on his personal debts, does this protect his business assets?

My claim was against his business.

Asked on April 26, 2012 under Bankruptcy Law, Nevada

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Whether or not your debtor's Chapter 7 bankruptcy filing as to his personal debts has an impact upon you as a creditor as to his business assets depends upon whether or not the debt owed you by a corporation of a limited liability company.

If the debt is a personal debt owed you where the debtor has filed for Chapter 7 bankruptcy protection, there is a good chance that the money owed you will be discharged in his bankruptcy and you receive nothing from the debtor. I suggest that you consult with a bankruptcy attorney that represents creditors to look into the substance of your question further and to review all contracts and invoices for the obligation owed you.

 


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