MY BUSINESS FAILED. AM I LIABLE FOR ALL OF MY ONLINE MARKETING COSTS?
A question which frequently arises with clients who have been involved with running their own business is what happens to my debts if the business fails? The largest investment for a service oriented business is usually online marketing costs. If you have signed long term contracts for business marketing, it is likely that you are personally liable for this debt if the business is a start-up with no credit history. In many states, attorneys are personally liable for the debts of their firm regardless of whether the firm is a partnership, LLP, LLC, corporation, etc.
The good news is that more often than not, long term contracts for business marketing can be discharged in bankruptcy case filings just like any other personal loan, personal credit card, pay day loan, medical bill, etc.
You may want to consider closing the business with your state's Secretary of State Office so that the business entity (if an LLC, corporation, partnership, etc) cannot be sued as a separate entity responsible as a co-debtor.
Kevin Ryan is an attorney who practices bankruptcy law in Mobile and Baldwin Counties, in south Alabama. Call for a free case evaluation at 251-431-6012
