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Seeking some advice for my parents situation.

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    Seeking some advice for my parents situation.

    I really dont know much about bankruptcy and I tried to read as much as I could on Google.

    the situation that my parents are in are the following

    My mom is the sole provider in Income... she is an RN making about 65k after taxes and benefits as of now.

    my dad runs a laundromat since last year that has been sinking and sinking since the economy has started to flip around.

    The business is under my dad's name (the rent, electric , insurance , water) but there is an equipment lease for the machines that is under my moms name since she has (had) enough credit to get approved for it. to the tune of $380,000 67months around $5350/mo

    Right now... the place is at a $5000 net loss per month and my mom is struggling to keep it afloat with her RN salary.

    we own our house that is under my moms name
    we own an apartment bldg that is also under my moms name... both of those are having uninterrupted payments made.

    They have missed quite a few payments on their laundromat related bills including that note for the equipment lease.

    Im pretty sure the credit score has been trashed as well.

    ---

    Ultimately I think my parents want to file for bankruptcy... buying the laundromat was a big mistake and my mom needs to provide her family instead of keeping the business afloat.

    She still wants to keep the house and the apartment which she is able to afford on her salary.

    My dad also wants to know if he is still able to keep the business name and the store location which he has never missed a rent payment on. and possibly turn it into another business such as a conveniance store that has a very low operating cost. ultimately getting rid of that equipment lease note.


    What are our options?.... He was thinking of just letting the equipment people come and repossess the machines.... but with a strike like that against my moms credit, how long will it take her to rebuild it?

    we also have racked up a heavy credit card bill of around 25k with business related expenses by trying to keep it afloat.


    any advice is appreciated.

    #2
    The best thing for your parents to do is to call and make an appointment with a bankrupty attorney to find out exactly how and where they stand and make sure the attorney handles business BKs. Most give free intial consultations. They need to take with them a complete listing of all their bills, monthly payments, sources of income, paystubs, asset listing and their most recent state and federal tax returns. Any time a business is involved in a BK situation, good legal advice is needed and afterwards you and your parents will know where everything stands financially and what they can or cannot do as to filing.
    _________________________________________
    Filed 5 Year Chapter 13: April 2002
    Early Buy-Out: April 2006
    Discharge: August 2006

    "A credit card is a snake in your pocket"

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