My mother has a lien against a business that she sold and it is to be paid in 20 years with interest, however, the owner is declaring bankruptcy (Chapter 13) and she received a letter, but he says it is not with the business, only his personal stuff…Is this possible? Does she need to file a claim with the courts? I don't know if he is telling her the truth..Please help! Thanks.
It depends on the business. If the business is a corporation or certain types of partnerships, then its finances are completely separate from the owners. If it's a sole-proprietorship, then, generally, there is no distinction between the finances of the business and the finances of the owner.
