We will lose anything if my son files for bankruptcy?

My son split up with his wife last year and move back home with us. He lives in the basement and has his own office down there. He is self-employed as a blogger but he isn’t making a lot of money and is falling behind with the credit card payment and car loan. He mentioned possibly filing for bankruptcy this weekend and says he needs to talk with someone. Since his business is registered to our address and he is self employed, is there anything we should be concerned about ?

One Comment

  1. Once he files for bankruptcy, he will have to change the business name. He can not use the same name and has to change it even if slightly. There may be an issue as to how your jurisdiction determines “household income”. If the court uses this approach (most don’t) then all income in your household is used to calculate your son’s eligibility for chapter 7 bankruptcy. The “income tax dependant approach” and the “economic unit approach” are the other tests. Very important to consult with a local bankruptcy attorney that knows which approach your jurisdiction applies. If you son moved from a different state, then could run into jurisdictional issues and which state’s exemption laws apply.

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