Q: My business partner (49% ownership in small sub-S) has filed chapter 7 personal bankruptcy.
My business partner was the only personal guarantor on the 3 business credit cards although I see in his filing he listed me and the company as "co-borrowers". Will I/company be liable for this debt even though we were not guarantors? We really only had credit card debt is there anything else I should be concerned with?
I would like to get his 49% of the stock back, how can I do this? do I make an offer to purchase to bankruptcy trustee?
A: If you did not guarantee anything then you are not liable for strictly corporate debts. Concerning the stock, if it has any market value the trustee will try to sell it. Minority ownership interests in a closely held corporation are often worth very little, but I would need more information to determine that. You can always make an offer to the trustee. If he can't sell it to you or someone else, it will abandoned to the debtor upon case closing.
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