Am I screwed? Check it out and tell me

[frodo123]

My business is failing, and almost 7 months ago now I had incurred a lot of debt, and pulled out about 60k in cash advances from credit cards to try to keep the business going. I've got a total of about $300k in unsecured debt to wipe out. I haven't had any cash advances in over 6 months, or any large business expenses.

I am looking to file a chapter 7 bankruptcy but I dont know if the judge will go back and make me repay the credit cards. Everything I have read says if the cash advances, etc are 6+ months old there is nothing to worry about.

Anyone have experience with this? Will it even be an issue? Should I wait longer to file?

Thanks

[keepmine]

For $300K worth of debt, you'll get some special scruity from the trustee. You'll likely need to explain the high level of debt but, people use cc's all the time to try and prop up a businees. I'd wait as long as possible to file but I doubt you'll have a lot of problems. Have you consulted with a bk lawyer yet?

[MomIcantFindmy]

No one can say for sure. Have you spoke with an attorney yet? They would be better able to give you an answer that would satisfy you.

The CC company can argue the 60K or try to coerce you into signing a reaffirmation agreement or negotiate with you to pay a partial amount. I would think it may be in their best interest to do so, considering the large amount...however, if you have kept all your receipts and can show you were trying to sustain a failing business in addition to the advances being over 6 months and you did not realize you were insolvent then I would not worry about it. I would assume they will fluff their feathers and I would let the judge decide. (Just me)

Quite a bit depends on your state, trustee and attorney. This is one situation where I would seek out a good attorney and not go it alone.

One thing I am confused about....if this is unsecured business debt or personal debt?

[Phillymanhere]

For this kind of money, you've got to talk to some attorneys and excellent attorneys at that. Most of us here don't have debt at quite that level. But schedule some consultations with bk attorneys and also bk attorneys who are familiar with small business.

You can usually schedule free consultations. The general recommendation here is to meet with 3 or 4 attorneys and get their perspective on things. Bring your bills, the amounts you owe, be ready to give detail to the attorneys. This is probably the best way to go.