Is bankruptcy my best option and why? 11 Answers as of July 09, 2015

My husband is one of three partners that built a home as a business deal. All three signed a personal guarantee on the loan. One partner has since filed personal bankruptcy removing herself from any remaining obligation. The home sold, but there is an outstanding balance due. If my husband has to file bankruptcy due to the LLC, do we both have to file bankruptcy? I did not sign the personal guarantee - I am not involved in the LLC at all. The LLC is now bankrupt and dissolved. Are there any other options we could look at for a resolution? We are trying very hard not to go the bankruptcy route, but feel it may be our only option. We are trying to save at least one of our good standing credit scores. Any advice you can provide would be greatly appreciated!

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
I am confused about how a home could be sold that there remains an outstanding balance. That seems odd. You will not have to file based on what you have told me. I suggest you seek out local counsel. You may find one at nacba.org
Answer Applies to: California
Replied: 7/9/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If you did not sign a personal guarantee then there is no reason for you to file bankruptcy.
Answer Applies to: New York
Replied: 7/9/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
Saying something is THE BEST OPTION with just the limited information you provided would be irresponsible for the attorney and is unrealistic for you. The first issue to consider is whether or not your spouse is even eligible to file bankruptcy. That is why he will need to meet with an attorney in person to review the exact financial data. In some instances, a settlement of this business guarantee would be possible, but the question will always involve the unknown issue of what the cost to settle will be. Most ethical bankruptcy attorneys do lay out the options and have no desire to talk someone into bankruptcy.
Answer Applies to: Nevada
Replied: 7/9/2015
Law Office of Michael Johnson
Law Office of Michael Johnson | Michael Johnson
Just because you are married does not require you both to file. He can file without you You will be required to disclose your income in his bankruptcy.
Answer Applies to: Florida
Replied: 7/9/2015
Stephens Gourley & Bywater | David A. Stephens
He can file bankruptcy without you. The other options I am aware of would be to ignore the debt and hope it goes away, or attempt to work out a settlement.
Answer Applies to: Nevada
Replied: 7/9/2015
    Ronald K. Nims LLC | Ronald K. Nims
    If you didn't sign the personal guarantee, then there is no reason for you to go bankrupt.?
    Answer Applies to: Ohio
    Replied: 7/9/2015
    GARCIA & GONZALES, P.C.
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    Because your situation would be both a personal and business bankruptcy discussion, I charge for these consultations. Now is not the time to skimp. Pay an experienced bankruptcy lawyer for 90 to 120 minutes of their time to discuss all of your options. I have no less then 50 questions I ask before I can start giving advice. No different then a doctor taking a medical history. How is the doctor to know whether you can be cured with a couple of aspirin or need brain surgery without asking the right questions.
    Answer Applies to: Colorado
    Replied: 7/9/2015
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    In Wisconsin, a marital property (= community property) state, generally both spouses are liable on a debt if it is even broadly in the interest of the family. So even if you do not file a joint petition in bankruptcy, you get some of the protections that go with the bankruptcy discharge when your spouse receives it. But without either of you filing bankruptcy, then you are arguably both liable on the guaranty which he alone signed. Bankruptcy is a big step, but in my experience it is for many people a big stress-reliever. Consult an experience BR lawyer in your area.
    Answer Applies to: Wisconsin
    Replied: 7/9/2015
    Charles Schneider, P.C.
    Charles Schneider, P.C. | Charles J. Schneider
    It does not sound as if you would have to join your husband's bankruptcy based on the limited facts you have presented. Your other options depends on similar facts I would need to as well.
    Answer Applies to: Michigan
    Replied: 7/9/2015
    Danville Law Group | Scott Jordan
    You say there is an "outstanding balance due". On what? Is the bank that your husband signed a personal guarantee pursuing him for any monies owed? Do you have the money to pay the debt? Your husband can try to negotiate a reasonable payment plan on the debt. If that is not an option, bankruptcy may be the only way to go. But, I would need a lot more information to make any sort of recommendation. I usually do that with a telephone call and interview.
    Answer Applies to: California
    Replied: 7/8/2015
    Law Office of Barry R. Levine | Barry R. Levine, Esq.
    Bankruptcy is the way to go if a settlement cannot be reached.
    Answer Applies to: Massachusetts
    Replied: 7/8/2015
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