I have BK, business partner trying to file...please advise

[dariousg]

Hello all, I already have a bankruptcy (ch 7) on my record. I entered into a business deal (well, not legally since my partner could not get any loans of any type if I was on the business records as a partner). I have told him all along that I will use my skills and knowledge to help him out if he ever starts a business. He started an espresso stand with all of his money and credit. Now, after about 10 months, the business is failing and he is looking to file bankruptcy. However, he wants me to take on half of the expenses put into the business and have it filed under bankruptcy on my name too. Is that possible? Personally I would like to avoid this since I have worked my rear off since my bk to get things semi straight.

Any help and advice on this would be very much appreciated.

Best regards and best of luck to you all in any bk situation. It's tough but there is life after bankruptcy.

Mike

[kiddles]

My initial gut reaction is that unless you signed any of the loan/lease agreements, you are not responsible for any of the debts. I don't think he would be allowed by the BK Court to list some of his debts, but not others (by claiming you were taking them).

But, if he doesn't include them in his BK, they are not discharged. And if you didn't sign for them, the creditors can't come after you for their money - they can only pursue him for it.

I'd run from this guy - he doesn't sound very honest to me.

[BKOnce]

See business tax records, contracts, leases, agreements, social security #, etc... to decide

[dariousg]

See business tax records, contracts, leases, agreements, social security #, etc... to decide

Pretty much the only document we have was one he put together that we signed. It stated that I would get 49% and he would own 51%. No notary or anything like that.

He had taken this document to the bank when he was applying for a line of credit and they refused it so he told them that he was 100% owner. The LOC was then granted but as far as leases, loans, etc. are concerned he is the only name. My name only comes into play for filing of the taxes and such. I am the one that was dealing with that stuff. That was the agreement. I volunteered my help and he wanted for me to be a business partner. Now it seems that he did it because he wants someone to take on half of the damages and for no other real reason than that.

I'm sure I can get away from this without much issue but the problem is that we broke one of the cardinal rules. We are also good friends.