What do I do?

[malenurse]

Unfortunately I got into business with someone, put all my savings and retirement into the biz, well here I am. My lawyer said just file personal 7,.... I don't want to loose my house and belongings etc. I have about 50k equity. All of the debt that can't be paid is too the company with SBA backed personal signatures and vendors.. about 1.3 mil outstanding. I can still go back to what I was doing before and continue to make a living and pay my own personal obligations, but I can't afford the business debt also. I have been keeping upwith my own cc 2, house, student loan, car and personal expenses. Also the business was in another state from where I own my home. I had no income for 5 months while i tried to get the biz afloat. what the heck am I suppose to do? I have yet to get any legal stuff handed to me at my door.

[whatamess]

What state are you in? Look up the homestead exemptions for the state you live in. If that can be covered, you are good to go on a 7.
WAM

[familyof7]

Was the small business sole propritor if so as long as both the personal band business debts are listed you are fine

[malenurse]

Some answers

My home is in New Mexico, they have something about another 60k exemption on the homestead, all stuff I don't understand. The business was a LLC. in West Virginia. How do I handle paying my own personal obligations? Just keep paying as normal, or let them get behind, or what. I have about 5 months of child support to catch up on also, but my ex and I get along fine, and she knows I'll make things right again. There will also be some outstanding fed taxes due on the business, it is my understanding that those can be paid at the end of the year.Can I put extra money back into a roth without getting dinged for it? I'm trying to avoid having to file twice, on the biz, and personal. I'd rather just file personal, and let the other member of the biz fry since the sob spent most of the money on himself!!!!!!!

[lrprn]

My home is in New Mexico, they have something about another 60k exemption on the homestead, all stuff I don't understand.

The exemptions in New Mexico are here - http://www.bankruptcyinformation.com/NM_exemp.htm . The homestead exemption is $30,000 for a single person (you didn't mention a current wife) but can be doubled to $60,000 if you are married.

However, NM also allows you to use the federal exemptions if you want - http://www.bankruptcyinformation.com/exemp-fed.htm . Unfortunately the federal exemptions allow much less for homestead - only $17,450 plus a wild card of $925.

Since you say your equity is $50K, neither set of exemptions are going to completely protect your home if you are single . However, **if you have remarried**, then NM's exemptions will protect your $50K in equity, keeping your house safe if you do file.

Any time you have business debt mixed with personal debt the way you do, filing bankruptcy can get very complicated. Your best bet is to make 3-4 appointments with experienced bankruptcy lawyers in your area who have experience helping filers whose major debt is due to business failure. Most give free or low cost initial consultations.

Lay your cards out on the table and see what the lawyers say is going to be possible in your case. At least then you'll be operating with knowledge to make the best decisions for yourself in the long run.

Sorry you were taken so thoroughly by this liar and cheat. But as bad as it seems now, things will get better in the future. Hang in there - keep asking questions - we'll help you as much as we can.

[malenurse]

homestead

so how do the appropriately find a value to the home then for exemptions? i am single, been down the d twice. i have furniture etc, nothing to outrageous and alot of camping, fishing gear, some tools etc. nothing that would make a millionaire out of me at a garage sale. they are saying i need to file in west virginia, because i was there from april 19 till the end of july. i had zero income for 6 months. i worked to hard to loose any of my junk.