If I opened a business and after a year of operationsI can’t keep going, would filing bankruptcy get me out of the lease?

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If I opened a business and after a year of operationsI can’t keep going, would filing bankruptcy get me out of the lease?

The business is not making any money, and we are looking for options to end the business. and we are trying to find what options we have to end this in the best possible way. What happens with the money we owe to vendors, landlord etc. Could we terminate the rent lease if we file bankruptcy? Would they go after personal belongings? like my car, my house etc?

Asked on August 19, 2011 Oklahoma

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 12 years ago | Contributor

Is the business a corporation/partnership, or merely a dba of yours as a sole-proprietor?   Filing a personal bankruptcy can eliminate your personal obligations on all the debts you mention.  As far as what assets would be at risk, that depends on which chapter you file, and what exemptions you have available under applicable state law. 

Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

Follow Me on Twitter:  @bklawr

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 12 years ago | Contributor

Is the business a corporation/partnership, or merely a dba of yours as a sole-proprietor?   Filing a personal bankruptcy can eliminate your personal obligations on all the debts you mention.  As far as what assets would be at risk, that depends on which chapter you file, and what exemptions you have available under applicable state law. 

Exemption laws are based on the state where you resided for the 2 years prior to filing your bankruptcy case or, if you lived in more than 1 state during that period, in the state where you resided for the greater part of the 180 days prior to that 2 year period.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

Follow Me on Twitter:  @bklawr


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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