Should I File...and if so....when?
Ok. Story in a nutshell. Opened a business 2 years ago. Business is having a tough go at it, but surviving. The economy is making it tougher. Unfortunately, our contractor ripped us off about $250K. So, in order to get open, we used all of our personal credit to finish the project (2nd mortgage, credit cards, personal loans, etc. Up until a few 6 months ago, we have been able to pay all of the bills. But now, we are getting behind. So, I prioritized. House payment, rent, payroll, leases and necessary business expenses (all of which are current). We have cut everything to the bone to survive. Unfortunately, we have had to default on a large chunk of cc debt...to the tune of about 150K (4 Amex cards, citi, BofA, WaMu). Some of the bigger cc's have been turned over the CA's and I am working on holding them off.
I have several questions before I ultimately consult with my attorney:
1. Since I am self employeed, can any of the CC's or CA's get a judgement against me that would force the company to have to pay
2. Within the next 12-18 months, most of the business debt would be paid off which would allow me to "settle" with the cc's or ca's.
3. Is it possible to file a personal bk without including the company (I have a c-corp and multiple LLC's).
4. I am like most, upside down on my house, so no equity at stake. All vehicles are company owned with no equity. No savings, bonds, retirement, etc. For the most part, no "real" assets other than possibly household goods.
5. That said, does it even make sense to file or just fight through and see who gets judgements and who falls off...then try to settle with them at a later date.
6. I do have a couple of business cc and lines in one of the LLC's name that we defaulted on. They are personally guaranteed, but the LLC is virtually abandoned.
I realize that a BK might shorten the time and save a lot of collection calls, paperwork, etc. But I really would like to take care of these debts on my own or after we receive a monetary award (ya right) from the lawsuit against the contractor.
I have several questions before I ultimately consult with my attorney:
1. Since I am self employeed, can any of the CC's or CA's get a judgement against me that would force the company to have to pay
2. Within the next 12-18 months, most of the business debt would be paid off which would allow me to "settle" with the cc's or ca's.
3. Is it possible to file a personal bk without including the company (I have a c-corp and multiple LLC's).
4. I am like most, upside down on my house, so no equity at stake. All vehicles are company owned with no equity. No savings, bonds, retirement, etc. For the most part, no "real" assets other than possibly household goods.
5. That said, does it even make sense to file or just fight through and see who gets judgements and who falls off...then try to settle with them at a later date.
6. I do have a couple of business cc and lines in one of the LLC's name that we defaulted on. They are personally guaranteed, but the LLC is virtually abandoned.
I realize that a BK might shorten the time and save a lot of collection calls, paperwork, etc. But I really would like to take care of these debts on my own or after we receive a monetary award (ya right) from the lawsuit against the contractor.
Comment