When to File

[wkellywx]

Hi all.. I am new to the thread, and would love some info. Here are the stats -

Credit card Debt - $60,000
Auto Loans - $15,000

Those alone.. no problem, as my income is $180,000.

However, our business has failed, and it is only a matter of weeks before they (landlord and/or bank) put locks on our doors.

Current note (SBA) - $280,000
Back Lease Payments due - $25,000
Current debt, electric, current rent, etc - $5,000
Lease is $4,000 per month, for the next 3.5 years, so - $176,000

My questions are these... I will NOT be able to pay for any of the business expenses that are due now, so I think I will be forced into bankruptcy.

How long does it take between the time they lock my door, and the day I will "actually" owe money due to a lawsuit?

Do I have any otptions other than bankrupcty?

My wife and I are legally seperating because of this, and I plan on paying child support and spousal maintenance. If I file bankruptcy, can they still go after her if she's on the loan?

Thanks in advance.

[325Falcon]

Thats a high income for any bankruptcy.

[wkellywx]

Yes... I agree, but unfortunately our total debt is going to go from $58,000 to nearly $500,000 in about a month or so. My disposable income is only about $1,500 when it's all said and done.

[Minnymouth]

Since your debt is a mixture of personal and business it is hard for us to answer any questions for you. There is way too much involved in your bankruptcy.

You need to have a consultation with a bankruptcy lawyer that handles business/personal bankruptcys. They can tell you what your options are, how it will affect your personal finances, and what/when to file and how to go about it......

I'm sure in your care there will be law suits involved which an attorney will have to handle for you.....

The sooner you discuss your options with an attorney, but better it will be for you.

You may be in a position of filing only a business bankruptcy unless your personal finances are greatly involved in the business also.

Wouldn't hurt to discuss the divorce issue also with you bankruptcy attorney since it will be part of the issue at hand.

Keep us posted, could be a very interesting case to observe and follow....

Minny

PS...... we can sure help you with the moral support if you let us.....

[wkellywx]

Thanks Minny. Yes, our case is very complicated. I wish I could sit on the sidelines and see how it turns out. Unfortunately, that's not an option for me.

As for the business, our loan is NOT in our name (it's in a business name), but my wife and I are guarantors, so its my basic understanding that we're screwed. Once they liquidate the assets (approx. $20K), and sell our home (probably $20K equity), we will be left with a $240,000 note due. Does anybody know what the bank will do in that case? They are guaranteed 75% by SBA, but I am not sure how that works. Do they come after us for ALL? or only the 25% left?

It's the lease that sucks as well. We PERSONALLY signed it, as it was done before our business was created. Can they sue us for the entire remaining balance, even if the business doesn't exist anymore?

As for the divorce, does child support count as income for my wife? Techically it's for my daughter, right??? Also, will I be able to use the Child support/spousal support as part of my monthy bills?

Thanks for the help. It (and the support) is greatly appreciated.