John & Mary are married. They own a home together and both signed for and on the mortgage. The home is worth 200K, they owe 100K, have 100K equity.
John loses good job, but Mary can keep the mortgage payments up with her income, plus incidental expenses.
John has debt in his name only, unsecured, owes 18K
John got a small businees loan (not SBA) for 100K in his name only and purchased a business in his name only for 100K. John has a few other unsecured debts, totaling 8K.
John business is failing, he cannot make the payments, there is now not a market for his business to resell, there is little business inventory of value.
John wants to file bankruptcy for 130K owed on the unsecured loans only.
Mary is concerned that they can come after the equity in the home that they own and owe on jointly.
John doesn’t think they can do this. They live in Indiana.
A side note, the business loan is in the name of a LLC Corp. that John set up, but John also signed as a personal guarantor for this 100K loan. Mary is in no way connected to the business or loan. Nor are there any other partners.
