Is Your Spouse Accountable For Your Business Debts?

Bankruptcy Attorney Dayton, Oh

spouse, debt, business, attorney, attorneys, lawyer, lawyers, bankruptcy, ohio, dayton, springboro,One of the biggest concerns about individuals who own struggling businesses and are considering bankruptcy is how this is going to affect their spouse. One of the major concerns is whether the spouse is liable for the business debts.

The answer to this all depends on the structure of the business and the way that the debts were incurred. It also depends on which state you live in and whether you are living common-law or are married.

If you are running a sole proprietorship business you have the total responsibility for the debts of your business. In this case your spouse is just as responsible for your business debts as they are for your personal debts.

If you made the decision to make your business a limited entity or a corporation then this is a different story. The business is considered a totally separate entity. What may change this however is that if you or your spouse decided to personally guarantee a business debt or co-signed for it then this could also involve your spouse.

It is really important to understand the bankruptcy rules of the specific state that you live in. The laws can differ between those that are common-law estates and community property states.

Ideally what you want to do if you find that your business is in a situation where you are prepared to go bankrupt but are concerned about your spouse’s responsibility is make sure that you seek out an experienced bankruptcy attorney. This professional can advise you on your best bankruptcy recourse and the best way to go about it, and can also assist you through its entire process.

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