Credit Cards used to purchase inventory for wife's business

[ben1381]

I am thinking about filing Ch 7 because of the $100,000 I have in unsecured debt but alone without my wife. Some of the credit card debt was used to purchase inventory for my wife's Mary Kay business. Could the trustee try and force bankruptcy on my wife or try to make her Mary Kay inventory part of the bankruptcy estate? Any information related to this topic is greatly appreciated.

[stressin]

I have similar questions about inventory. I used credit cards to purchase inventory for my gift shop, and I am going out of business and filing bankruptcy. I am hoping that my lawyer will have some answers later this month, but I have also posted asking about what happens to inventory during a bankruptcy? I had hoped to pay off all my vendors before closing, but I have one that I owe over 10,000 to and their stuff is moving SLOWLY. I will probably end up including them in the bankruptcy--but I am not sure how all of that will go. At this point, I am okay with turning it all over to a trustee, cooperating as much as I can, etc. just to get out from under this business. The economy is so bad, and I've worked for almost 2 years without paying myself.

[JRScott]

If more than 50% of the debt is business expense you check the business box rather than the consumer box on the petition, you should ask a lawyer about it though.

[ben1381]

My question continued

To clarify my question I don't believe more than 50 % of my debt is business related. Also I want to file bk but my wife doesn't. And New York is a common law state. So with this additional information does anyone have any comments?

[Cali]

If you are in a community property state, your wife will be held responsible for the debts as well. It would be better for her to file with you, that way the debts can be discharged from both of you.

To clarify my question I don't believe more than 50 % of my debt is business related. Also I want to file bk but my wife doesn't. And New York is a common law state. So with this additional information does anyone have any comments?

[ben1381]

I am in a COMMON LAW STATE not community law state! I know common and community are similar lol.

[BKOnce]

Sell all those little comestic junks on eBay.... from little as 0.50 cents up to $100...to compete with chinamen

[Cali]

Since I am not common law married, I didn't realize states still did that.

I am in a COMMON LAW STATE not community law state! I know common and community are similar lol.

[keepmine]

Since you're not in a community property state, your wife won't be liable for debts in your name you discharge.
I'd love to see a trustee peddling Mary Kay door to door in that pink caddy!

The only issue you may have is, with 6 figure debt, the trustee may want an explanation about how that happened.
Have you spoken with a lawyer yet?
Lot of other info will be helpful. Do you have equity in a home or car? What is your income and your wifes income and how does that relate to the median income for the size of your household in NY?

[ben1381]

I haven't spoken to a lawyer yet- I like to handle legal matters pro se if possible- I did my wife's immigration this way and it went through without a hitch except a lot of waiting. My wife is partially disabled and has no income other than her MK business-My salary is near the median for New York 4 people 77500 approx. New York has $50,000 per person homestead exemption and we have less than $100,000 equity in the home. I will probably have to pay in full or settle two loans that are joint- All other unsecured debt is in one name only Four secured debts joint mortgage,home equity,car and vacation ownership which I wonder if the trustee could even sell for much and we have mortgage on that.