Business/Personal
March 10th, 2008 by Questions
I own a business and I claim personal bankruptcy, the cars for the business have a personal gaurantee from me, does anything reflect on the business and do the cars have to be returned to leasing company if payments are being made?
One Response to “Business/Personal”
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March 11, 2008 at 7:39 am, A licensed trustee said:
It’s more complicated than you think. If your business is incorporated and you file for bankruptcy then your shares will vest (become the property of) your trustee. Your trustee is not likely to allow you to continue to operate the business so the cars will likely go back.
If your business is not incorporated then the leases are actually personal debts (even though they are for the business) and then you may be able to keep them if you can maintain the payments.
I strongly suggest you go and speak to a trustee – if your business is going to complicate things the sooner you get professional advice the better.