Advice Please!

[vm02007]

I'm so glad I found this forum. I have been reading the posts and it seemed to give me some comfort. Although I do have a question to ask.

Just a little background about myself. In 2004, I took out a small business loan from a bank. THe business (which I formed as an S corp) failed and I closed it in 2006 although I continued to make the monthly loan payments because I found employment elsewhere and did not want my credit to go bad. I have since left that employer and I am curently working for myself although I am not making enough money to pay back all debts that I owe.

Here is a list of my debts:

1. Business loan: $45,000
2. Line of Credit (personal): $15,000
3. Car Loan (Credit Union): $13,000
4. Credit Cards: $14,000

I have dug myself into a hole that seems to get deeper by the day. I really thought that if I preservered, I could eventually make enough money to pay back all debts. At this point, that may only be an unrealistic dream.

I am meeting with a BK attorney next week but I am curious if anyone knows or has advice regarding this question.

My question is: Would I be able to file for bankruptcy wih the business debt and my personal debt together under Chapter 7? Also, what advice would you have for this scenario?

I appreciate any help.

[Help!]

Yes, you can. Without knowing the details you'll go over with the attorney, it appears the debt you are seeking to discharge is primarily business debt and not consumer debt. If you've familiarized yourself with the Ch. 7 forms and the means test, you may have heard of the "presumption of abuse" which can stop a Ch. 7 filing in its tracks. The good news is that the presumption of abuse applies only to debtors with "primarily consumer debts". Unless there is other personal debt (such as real estate) you haven't listed here, you are in good shape at first glance. Good luck!

[vm02007]

thanks for that piece of information. It was very helpful.