Asked in Bankruptcy for Alabama

Q: If i file a chapter 11 business can I add a personal promissory note that includes business assets?

Please respond.

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1 Lawyer Answer
Christopher Kern
Christopher Kern
  • Bankruptcy Lawyer
  • Mobile, AL
  • Licensed in Alabama

A: Your question is not entirely clear. If you file a Chapter 11 for a business, I assume it is either a corporate business of which you own the stock, or a sole proprietorship owned by you. Because of your question, I am assuming it is a corporation. No, a personal debt is not listed in the corporation debts and collection against you individually could still proceed. If assets owned by the corporation secure the debt, the bankruptcy would prevent them from being repossessed or seized, without court approval.

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