Too much debt to file??

[Overmylimit]

My story is long but I will try to make it brief. I own a commercial cleaning business in California. I did a buyout of another company in 2007 and thats when the trouble started. I met with a lawyer on Thursday and he said I had too much debt to file. Basically here is my snapshot right now. My home a 1st and 2nd total about 795k 2 rental properties mortgages on both about 140k total (they are out of state). 450k in unsecured business debt. I own all of my cars and business equipment outright. He told me I had too much to file, my business is a sole propreitorship. He was calculating on the computer and said I couldn't make more than 66k per year between me and my wife? I kind of didn't understand that was he saying if my business grossed more than that or my actual pay that I take from the business. I never take a check from the business but it does pay most of my bills. So he said if he were me he would dump the business and then go back and file chp 7 to get rid of the unsecured, he also said if I didn't have the ton of unsecured debt he could strip off the 2nd mortgage since the values have plummeted. Any advice would be helpful. I have another appointment with another lawyer but they are taking appointments in early December.....a long way off. Thanks for any help. Mike

[ready2puke]

Hi Mike you mean these attorn. your talking to arent taking appts til Dec? Thats crazy! There are alot of attorneys out there are you in LA?

[Overmylimit]

No I am in Stockton but the lawyer was highly recommended. I called their office as soon as I left the other laywers. The person who answered said they were taking appointments for Dec 4th did I want morning or afternoon. My thought was either they are they good that there is a long wait or they don't have their act together. Although she told me a long list of items to bring the 1st lawyer didn't have me bring anything in. It just seems weird to me that you can have too much debt, it would seem like the more you have the better the reason why you need to file.....

[rrockinggramma]

Chapter 13's do have debt limit ceilings. However with your business, there are several posters here who have filed chapter 7's after having given up their businesses. Chapter 11 is also an option as that is BK for business. However, if you can do a chapter 7, then do it!!! (no debt limits there)

[Flamingo]

You have a very complicatd situation with business and personal debt intertwined and need good legal counsel specializing in business bankruptcies. It sounds to me as if you saw just a general BK lawyer handling personal BKs. The one you were referred to probably is more qualified and, therefore, more busy. There are other attorneys out there if you don't want to wait until December - call your State Bar Association (look under the "State" section in your phone book), give them a call and say it looks like you have a complicated business and personal bankruptcy issue and would like the names of reputable counsel in or near your area who they could recommend. Best of luck to you.

[HHM]

This is a duplicate post, so I am locking it.

Please only post a question in one thread.

http://www.bkforum.com/showthread.php?t=28153