Can a personal bankruptcy have an impact on a business owned by the individiual filing for personal bankruptcy? In the bankruptcy case of Carrie Follis the answer is yes. Follis, the owner of Naked City magazine recently filed for Chapter 7 bankruptcy. According to BizJournals, Follis was awarded a debtor discharge as of July 23, 2010.
But that may not be all for Follis. The Green Tangerine Publishing, LLC owner may have business assets on the line according to the trustee of her personal bankruptcy filing. Many consumers with small to medium-sized businesses would ask if this is a common scenario. It can be, but most of the time business assets are protected if there is a clear line between personal and business assets. Many business owners will protect their personal assets by putting them in a number of kinds of trusts, while others take their chances, feeling safe that personal bankruptcy will not have an impact on their business if it is an LLC or corportation.
But as we can see here, Follis has an LLC and the personal bankruptcy filing now on her record could mean the loss of assets to her company.
If you're looking for debt relief but don't know if filing for bankruptcy will affect your business, call Tom McAvity at Northwest Debt Relief Law Firm today to find out with a free consultation at 1-360-828-0110.