Toughest Choice To Make
It's been a tough 8 years for my wife and I concerning finances. Corp. buyouts, bankruptcies, have a job one month, not the next especially last year. We've accumulated a lot of credit card debt, bad business debt etc.
Like most people you think you could hold on and things will get better. At least, that's what I've been believing. Now, after looking for job for the last month and the economy, I'm not so sure anymore.
Being served papers, phone calls and the threatening letters are getting too much to handle.
I hate the thought of losing everything, especially the house, that were bringing up the kids in. I can't even afford legal advice to find out my options. I wish I knew a financial genius that has been we I am now, to tell me how to leverage a way out.
So I'm here, looking for some type of answers or even a related story about going Ch. 7 and how someone got through it.
I own a small part-time business as an LLC. The debts are personal, however, is there any way (if I chose to go Ch 7), to list everything under my business, so it shows the business going Ch 7?
Hey, thanks for your help.
David D.
Welcome, David! It's possible that you might be able to keep yo
Welcome, David! It's possible that you might be able to keep your house, even if you file Chapter 7. It depends on what state you live in, what your allowed exemptions are, and how much equity you have in your house. We live in California, and we just recently finished a Chapter 7. We owe more money on our house than it is currently worth, so we were able to keep it, without even using any of our available exemptions on it. Actually, we were able to keep everything else too because we didn't have anything that was worth more than the allowed exemptions.
I'm not an expert, but I doubt that you would be able to list all of the personal debts under a bankruptcy for the business. I'm not sure about that though.
Most bankruptcy attorneys give a free initial consultation, so you actually could consult with one to find out what your options are.
I found the following pages on Chapter 7 Bankruptcy which may he
I found the following pages on Chapter 7 Bankruptcy which may help you in your end: -
Is bankruptcy a viable option
I want to file Ch.7 myself - anyones else do a ch. 7
In particular to your business, I found this page very interesting which may give you some insight: -
Chapter 11 bankruptcy may be referred to as a form of ???????corporate financial reorganization???????
Business debts are treated a lot differently than consumer debts
Business debts are treated a lot differently than consumer debts, and usually a lot harder to gt out of. That is because a lot of the consumer protection laws out there (fdcpa, TILA, etc) don't apply to business debts.
The same goes for bankrupcty. I'm pretty sure a business (LLC, Corp) cannot file Chap 7 or 13. That's because those chapters are meant for "individuals". If a business wants to file BK, it has to be a Chapter 11.
I'm sorry, I just read that most of your debts are personal and you wanted to list them under the business. I'm afraid that's not possible. Credit cards, loans, etc you would have signed for personally and that makes you personally responsible for them. For them to be considered "business" debts, they would have had to be issued to the LLC and signed by you in a capacity for the LLC, not personally. Essentially what you want to do would have the same impact as saying "I really took on all this debt for my brother, and so he's the one that owes the money, not me."
