Q: I have a business that I am closing in Georgia but have recently moved to Ohio for a new job. What state should I file?
I have building, property and contents on a SBA loan that is 2 months behind as well as personal guarantees on with vendors for product and supplies. My personal / business credit card are maxed out trying to save the business.
I have recently moved to Ohio to take a new job that pays me very well. What are my options and how should I file? Total debt is $1.8 million with no equity in any of my assets.
What is the best approach?
A: I would need to know more about the business as to whether a Chapter 7 business filing is necessary or whether you should wind down the business entity outside of a bankruptcy context. Your personal guarantee leads me to believe a personal Chapter 7 or 13 may be necessary. There are rules about filing and using exemptions when you move to Ohio, but an experienced bankruptcy attorney should be able to advise you on those issues. There is no minimum or maximum debt limit in a Chapter 7; however, there is a ceiling on secured and unsecured debts in a Chapter 13.
A: Much more info is needed to make a proper decision, but from the bare bones here, I’d guess filing A Chapter 7 in Ohio after you meet the six month residency requirement, but you need to sit down with a hands on professional and look at all you options after the facts have been flushed out.
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