Newbie Question

[Big T]

I have worked at a company owned by a family member for the last 9 years. Over the 9 years, I have obtained credit cards in the company name and have used personal cards for company purchases. I have about $50,000 of CC debt that is in a program where they take $1200.00 a month out of my family members account each month. There is another $50,000 in cards that are in the companies name. They don't show up in my personal credit report, but I think I am still on the hook for those. The company is in some serious financial distress and the is considering filing chapter 7.

If that is the case, I am assuming I am going to have to file a personal bankruptcy case myself for the 100,000. My wife's name is not tied to any of it. Our mortage and car is in both of our names. Can I file myself for the credit cards? How is my wife affected? My mortage? My future? All of the purchases were made for the business, but I'm sure the creditors could care less. Please help, I need advice.

[AngelinaCatHub]

You are in a good place for advice. Understand that it is not legal advice, only opinion and experience advice. I would let the company go the C7 if you have to also, that is your decision. BTW is it your company or what part of linking you to this company are you? You need to supply a bit more info. ‘Hub

[Big T]

It is my brothers company. He is a co-owner with another guy. (Complete idiot). I made the purchases over the last 1-2 years just trying to keep it a float. (Yeah, I know, very stupid) Can I be discharged or is me and my wife and kids screwed forever?

[keepmine]

Are you in a community property state? What is your HH income?

[JRScott]

As keep mine asks we really need to know your state and generally your income level for the past 6 months, then we might can provide a little more advice

[Big T]

I live in Michigan. Not sure if it is a community property state or not? (And I don't know what that means?) HH income was about $108,000 a year, thats gross wages. However I will now be without a job, so that number is going to go down to $62,000. I spoke with the company lawyer and he kind of indicated that I could file seperately, but wasn't sure because he is not a bankruptcy lawyer. I know I can't make the payments even if I was employed at the same level. There are about 9 cards all with relatively small balances. The highest being Capital One, $20,000, Citi Card @ $13,000, & another Cite type card at $14,000. The rest are all $10,000 and under.

How do I find out if the cards that are in the companies name can be tied back to me? The card has the company name, then my name underneath it. A couple of the cards have the company name and then my brothers name underneath it.

[keepmine]

MI is not a CP state so, you should be able to file without affecting your wife.
Don't get hung up on personal cards vs business cards. Take a bath in the bk waters. List as a creditor anyone who could conceivably have a claim against you.
Most bk lawyers give free or low cost intial consultations. SPeak with 2 or 3 and get all of your options explained.