Can I file for bankruptcy as a new business owner?

My salary has substantially decreased over the past few years. However, I also recently started a company with several partners. Will the fact that I just started a company prevent me from filing for bankruptcy?
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Answered By: Lorene Lynn Mies, APLC
Yes, you can file. However, if you started this business with a great deal of your own money instead of paying your creditors the Court and US Trustee can claim bad faith.

Answer Applies to: California
Replied: 8/27/2010

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: The Law Office of Mark J. Markus
might. No way I can answer a question like this without knowing all the facts and figures. What is your current salary with the new company? Is this company a corporation? Do you have an ownership interest in it? If so, what is the value of your interest? etc. etc. These all factor into the analysis. You need to have a comprehensive consultation with a bankruptcy attorney to assess your options.

Answer Applies to: California
Replied: 8/26/2010

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

Answered By: Diefer Law Group, P.C.
No, it should not prevent you from filing.

Answer Applies to: California
Replied: 8/26/2010

Disclaimer: The response above does not form an attorney-client relationship. This answer may or may not apply to you and should not be relied upon as legal advice. LawQA does not make any representation as to the expertise or qualifications of this attorney. This attorney may or may not be admitted to state bar of your state.

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