My husband has a LLC that has lines of credit with the bank and bills. To get the line of credit he had to guarantee the line personally. The business is not making it. I am not on the line of credit or any of his accounts. The business may be going under
There are two parts to the question – If the company goes under will he have to file personal or business bankruptcy? If he has to file personally – can he do it without effecting me or my credit?
Well you might be impacted, but indirectly.
If he has to go personally bankrupt and you have any joint credit accounts it will be noted on your credit report that the account was included in bankruptcy.
If you have any joint assets, like a home with equity, then that might a bit of an issue as well.
What I would suggest is that you and your husband make an appointment with a local bankruptcy attorney now and go in and ask all the questions to plan for what may happen. It is better to be informed and prepared that wondering and worrying.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.