Can I file for bankruptcy as a new business owner? 3 Answers as of August 27, 2010

My salary has substantially decreased over the past few years. However, I also recently started a company with several partners. Will the fact that I just started a company prevent me from filing for bankruptcy?

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Lorene Lynn Mies, APLC | TheBankruptcyMinute.com

Yes, you can file. However, if you started this business with a great deal of your own money instead of paying your creditors the Court and US Trustee can claim bad faith.

Answer Applies to: California

Replied: 8/27/2010

The Law Office of Mark J. Markus | Mark Markus

might. No way I can answer a question like this without knowing all the facts and figures. What is your current salary with the new company? Is this company a corporation? Do you have an ownership interest in it? If so, what is the value of your interest? etc. etc. These all factor into the analysis. You need to have a comprehensive consultation with a bankruptcy attorney to assess your options.

Answer Applies to: California

Replied: 8/26/2010