Expert: Terry Leeders - 4/7/2009

Question
I am considering filing a personal bankruptcy, but I own a business (s corp)that i want to sell to one of my employees. The business had a loss for 2008 and part of my personal bankruptcy involves credit cards that are in the business name along with my personal guarantee. Could I file a chapter 13 (personal) and still sell the business & not have the new owner responsible for the debt ? or should I just file a chapter 7...he biggest issue is to keep the business alive without the credit card companies coming after the business (real estate / mortgage) ... The buiness has no assets (property  or material items)

Answer
Several points for you.
1. Your personal bankruptcy will only remove your personal obligation on these debts, the business will still be responsible for them.
2. Your personal bankruptcy will have to account for the value of the business, you stock has some value (perhaps what you would sell it for to your employee). The chapter 13 would need to be set up to pay back enough of your unsecured debt to protect that value, or if chapter 7, the court could liquidate the assets to get to that value.
3. If the business is sold pre-bankruptcy, that sale would need to be disclosed in your bankruptcy filing.  
Therefore, I suggest you meet with a local bankruptcy attorney to help advise you on these topics and help design a case that would be the most beneficial to you.