If I opened a business and after a year of operationsI can’t keep going, would filing bankruptcy get me out of the lease?

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If I opened a business and after a year of operationsI can’t keep going, would filing bankruptcy get me out of the lease?

The business is not making any money, and we are looking for options to end the business. and we are trying to find what options we have to end this in the best possible way. What happens with the money we owe to vendors, landlord etc. Could we terminate the rent lease if we file bankruptcy? Would they go after personal belongings? like my car, my house etc?

Asked on August 19, 2011 Oklahoma

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

Is the business a corporation/partnership, or merely a dba of yours as a sole-proprietor?   Filing a personal bankruptcy can eliminate your personal obligations on all the debts you mention.  As far as what assets would be at risk, that depends on which chapter you file, and what exemptions you have available under applicable state law. 

Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

Follow Me on Twitter:  @bklawr

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

Is the business a corporation/partnership, or merely a dba of yours as a sole-proprietor?   Filing a personal bankruptcy can eliminate your personal obligations on all the debts you mention.  As far as what assets would be at risk, that depends on which chapter you file, and what exemptions you have available under applicable state law. 

Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

Follow Me on Twitter:  @bklawr


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