The Leading Denver Debt Relief Attorneys Provide the Clearest Answer Available Online
When you’re struggling with personal and business debt, your worry may start to shift from “What will happen to me or my business” to “What about my family?” This is a natural, normal set of concerns, and shows that – even during your current financial challenge – you’re thinking unselfishly about how you can help your spouse, children, and others.
Specifically, our clients begin to worry about their spouse and whether the burden will legally fall on them. This is entirely understandable, and, at Wink & Wink, we are prepared to have these conversations and answer your questions right away.
Our Denver debt relief attorneys, who offer premier assistance for bankruptcy and debt settlement near you, can sit down with you and outline exactly what to expect when you decide to tap one of our highly beneficial legal services.
Our team of credit card debt lawyers and legal specialists can offer a clear outline of how you can actually benefit from bankruptcy and debt settlement – whether it’s for you personally or for a business entity. We can ensure you understand how our strategic solutions work on your behalf – and your spouse’s.
Understanding Spousal Responsibility and Business Debt
First, it is important to determine the type of business entity you own. If you are a LLC or corporation, your business is a separate entity from you legally. In this case, you are typically not responsible for the LLC or corporation’s debt unless you have personally guaranteed your business debt. Even if you are personally liable for your business debt through a guarantee, your spouse is not liable unless he or she also guarantees the debt. Unless the spouse is also an owner of the business, it is rare that the spouse would sign on as a guarantor of the business debt.
If you are not operating through an LLC or corporation, then you are operating your business as a sole proprietor. In this case, all the business debt is your debt personally because there is no legal distinction between you and your business. The business and an individual operating as a sole proprietorship are one and the same. Here again, however, it is rare for your spouse to be liable for your business debt unless your spouse is also part of the business, or your spouse’s credit was required for your business to obtain credit and they signed on as a co-debtor or guarantor of your business debt.
If you are liable for your business debt as a guarantor or sole proprietor, you can file for personal bankruptcy or consider debt settlement with Wink & Wink to resolve your business debt and be on the road to a 700 credit score and eligibility for a mortgage within two years. In bankruptcy or debt settlement, you will likely have many of your debts discharged or pay significantly less than what you owe. You can also keep up to $60,000 of your business assets in bankruptcy, as these are exempt under Colorado law. Soon, you’ll be on the road to better business and financial decisions, and you won’t have to worry about your spouse sharing the burden.
If your spouse is liable for your business debt, our credit card debt lawyers often recommend that you file for bankruptcy jointly. Because there is only one filing, you’ll save money on fees, and you can rest assured that no debt falls on either spouse. In fact, going through this together has the potential to strengthen your partnership as you take actions to ultimately minimize your challenges and clear the way for a positive outcome. We can offer this solution and relief at Wink & Wink, an exceptional team for debt settlement near you.
What About Corporations or LLCs? Is My Spouse Responsible for This Business Debt?
Only in the case of a corporation of a limited liability company is there sometimes a possibility that you won’t be personally responsible for your debt. However, this doesn’t apply to all corporations or LLCs – loans may still have been personally guaranteed, leaving you responsible for them.
If you are personally liable for your LLC or corporation’s debt, our business debt attorneys often advise that you restructure the business as a sole proprietorship and then file for personal or joint bankruptcy to reap the same benefits of bankruptcy that we’ve explained above. This can be an effective way to stay in business while getting out of debt. And even though you have a different legal structure for your business, your customers often will not know. At Wink & Wink, we strive to find a solution that can significantly alter your future for the better, although it may seem challenging upfront.
Our credit card debt lawyers are a winning team for debt settlement near you, and we look forward to finding a solution that feels right to you and for which you can clearly see a positive outcome. Our Denver debt relief attorneys provide clarity, insights, strategy, and a path forward, so you can set your sights on better things down the road.
Understanding Spousal Responsibility and Personal Debt
When you operate a small business as a LLC or corporation, it is common for your business debt to be personally guaranteed because landlords, banks, and even some vendors know the benefit of holding you personally liable for the LLC or corporation’s debt. Still, this does not necessarily mean your spouse is also liable for the business debt. If she is not, you can pursue bankruptcy or debt settlement to resolve your personal debt without your spouse.
If you file bankruptcy without your spouse, your spouse’s debt and assets are not part of your bankruptcy. If you have joint debt or jointly owned assets with your spouse (for example, your mortgage and home), your interest is included in the bankruptcy, but your spouse’s is not. And your spouse does not get out of joint debt by filing for bankruptcy without them. However, your spouse’s income will have to be disclosed in your bankruptcy even if you file without them. In general, bankruptcy law includes a non-filing spouse’s income in the means test to determine if you can afford to repay your debt. In this way, your spouse’s income can form the basis for you having to repay debt even when your spouse is not liable for the debt. It is important to note that you can avoid having to repay debt in bankruptcy based on your and your spouse’s income if the majority of your debt is so-called non-consumer debt (i.e., business debt and/or taxes).
If you are planning to get married while also struggling with debt, it is important to know that your spouse’s income can impact your options in bankruptcy. This often means it is much better to resolve your debt through bankruptcy or settlement before getting married. While your new spouse may not be liable for your debt, your life together may be negatively impacted by your debt struggle. It is much better to get the marriage off on the right foot by clearing away your debt before taking your vows.
Finally, it is important to know that your spouse can become liable for your debt in Colorado through a law called the Family Purpose Debt. If a creditor can prove that the family benefited from the personal debt that was incurred by one spouse, it will also be the spouse’s responsibility to pay the debt. On the surface, it seems that your business debt is likely not considered a family purpose debt, which has historically been limited to medical debt (definitely for a family purpose) or possibly personal debt that went to the household.
Struggling with debt can be very confusing and challenging to manage on your own – and even more so when you start to research solutions online. However, when you contact one of our Denver debt relief attorneys, we can present the most cost-effective, easy-to-follow plan for you and your spouse, including jointly filing for Chapter 7 or Chapter 13 bankruptcy. If you are above the income threshold for Chapter 7 bankruptcy and would have to adhere to a payment plan in Chapter 13 bankruptcy, you might consider debt settlement if you have cash available to settle for a percentage of your debt in the next 24 months.
Wink and Wink’s team of credit card debt lawyers are here to educate you and provide the solution that will help you get the most of a difficult time in your life. After a free consultation and our legal expertise, you’ll recognize why we’re considered the premier team for debt settlement near you. We can help you move forward with a debt solution that will help you and your spouse out of the stresses and worries that debt can cause and replace those feelings with relief.
Team Up with Wink & Wink to Resolve Your Business Debt Challenges
Whether the solutions we’ve provided above apply directly to you or if you think there are other circumstances that warrant consideration, we welcome the opportunity to patiently listen to your story and gather as much information as we can about your financial difficulties. Every client we work with is different, and we honor that difference, so we can better understand you and come up with the very best path forward.
Our primary goal at Wink & Wink is to understand what you need and learn why you’re considering a Denver debt relief attorney, so we can tailor our legal strategy to maximize the benefits for you. Unfortunately, there is far too much misinformation about bankruptcy and other debt relief solutions, and it’s no secret that seeking a credit card debt lawyer or searching online for assistance with debt settlement carries unnecessary stigmas. However, there’s only one thing that should really be stigmatized: inaction.
Inaction will never settle your debt, will never provide you with relief, and can’t get you on an upward trend toward a better credit score and the many other benefits of resolving business debt. Bankruptcy and other legal solutions are tried-and-true pathways toward a better financial life. Ask us during your free consultation at one of our offices for debt settlement near you, and we can tell you the stories of those we’ve helped with our dynamic legal services.