Whoa is us...New2Bankruptcy

[Awe2Angst]

So glad I found this forum. I've already learned stuff....but BR seems all to confusing to me.

We have a furniture store that is going under. We have store orders on personal credit cards. Ug.

We met with a lawyer...and he went over 13 and 7.... I think we are going to have a 'retirement sale.' And then apply money to taxes first, then personal credit cards [although I can't remember why he said this was important. Then we'll bring our dept back to the lawyer and he'll advise us if 13 or 7 is better for us....

Also, only my husband will file. But lawyer said the money in my account in another state [with is name on as joint in case I dropped dead] would be taken to pay debts--even though it is my half of a house sale for 2 years ago. Oh well, it's only money right?

Any advise, words of encouragement [like you will sleep though out an entire night some time in your future] are so appreciated. I've saved the PDF manual of BR and will attempt to print it on both sides of paper--cause I'm trying to be thrifty now...

Thanks alll! Again, glad I found you....just that makes me smile a thin smile.

[stressin]

"We met with a lawyer...and he went over 13 and 7.... I think we are going to have a 'retirement sale.' And then apply money to taxes first, then personal credit cards [although I can't remember why he said this was important. Then we'll bring our dept back to the lawyer and he'll advise us if 13 or 7 is better for us...."

Sorry to have to welcome you to the club, but you will find good info here.

Just wanted to say, I just filed my chap 7 after my small business went under. I didn't attempt to pay off the personal credit cards over the "business" credit cards. I don't know your situation, but I am a sole proprietor, so it didn't really matter, in my case, if the card was personal or business. What mattered is what the cards were USED for, and more than 50% of the debt on the cards, in my case, was used for business.

When you have your sale, be sure to get enough money to pay your sales and any income tax that you expect to owe as these are not dischargeable. I came close, but will still be short a few hundred dollars on my sales tax, that I will be able to come up with. Otherwise I was fortunate that my going out of business sale brought in enough money to cover my shop rent, utilities, boxes and supplies to box everything up, 6 months storage on the remaining inventory--as I wasn't sure how much would be exempt, etc.

It may be that your personal cards will make the majority of your debt personal rather than business, and this can change things in a bankruptcy.

Also, you can see a few lawyers and get their opinions. I think this is ALWAYS a good idea. The first lawyer I saw said that I wasn't bankrupt "yet" and basically dismissed me. The second lawyer could see that I obviously was insolvent, and that closing the store and filing bankruptcy was my best option. (My credit counseling folks agreed.)

So, best wishes to you and be sure to get all the info you can, and maybe a second lawyer's opinion--it can't hurt.

[Awe2Angst]

Stressin', yeah, sad state of affairs. I think we might have made it had the economy not bottomed out. Funny, folks don't want to buy a couch when they can't pay for food. Anyway, good advise you gave, I will get several consultations... I think we can made enough for our taxes...

No most of our debt is business and even the personal, like you, were mostly used for personal...I have so many people saying, "Well, when I filed, blaa blaa blaa." They mean well, but they confuse me.

I've downloaded and printed the manual on this forum and it seems to have sound advise. Your first lawyer said you weren't 'yet?' Wonder what his ruler was? I think he lived in anther bubble from the common person.

Anyway, thanks for the welcome...just wondering did you sleep before filing? Are you now? When does that come back? Can I file for bankrupted sleep?? haha

Namaste'

[AngelinaCat]

Hi Awe2Angst, welcome to the forum. I strongly suggest searching the nolopress site at nolopress.com, and invesitgate their materials on BK and whether or not they apply to you. We purchased the downloadable version of the C7 book for about $17.00 and have been pleased with the straightforward plain English explanations. We are not familiar with the C13 book or the others. That will help to start answering your questions. And if you print it out, it is good as a 'Reference Manual'.

My husband and I (better known on here as 'AngelinaCatHub) started preparations to file a C13. But job losses forced us into a C7. We filed as personal individuals and did not have a business involved, so really can't answer those type of questions.

But I CAN answer: yes you WILL eventually be able to sleep at night. Just realize that any decision you make toward liquidating your business and /or filing BK is a BUSINESS decision, and NOT a personal failure. With the economy the way it is, and is going, you are going to have a lot of company.

I advise right now to stop paying any credit cards, and using them also. Save that money to (1) hire a good BK attorney--especially since you have a business, and (2) keep a little cash in the sock drawer for DIRE emergencies.

Take a look at the second line in my signiture. That might help. Anyway HUGGS!!! Welcome to the forum.

[Awe2Angst]

AngelinaCat, thanks for the answer and I will go to nolopress.com.... I'm not conciously worrying. It seems more a physiological response that wakes me up at 3am... Ohwell, I'll take more naps. I'll advertise just how comfortable our beds are by....SLEEPING ON ONE! haha...

[JRScott]

Someone from the Western District of North Carolina .

I am from there too but more up towards the Virginia border.

I didn't have a business and my case was pretty straight forward.

However on a few points.

1. Pay off Tax Debt first.....reason this is non dischargeable anyway so might as well pay it off.

2. Pay on Credit Cards....perhaps he's wanting to establish that you were trying to pay them off especially if recent charges.

3. Yep joint bank account....sadly he's right they can take your husband's portion of that.

I have a question on the debt your filing on, is it just in his name?

[BigJohn]

Stressin', yeah, sad state of affairs. I think we might have made it had the economy not bottomed out. Funny, folks don't want to buy a couch when they can't pay for food. Anyway, good advise you gave, I will get several consultations... I think we can made enough for our taxes...

No most of our debt is business and even the personal, like you, were mostly used for personal...I have so many people saying, "Well, when I filed, blaa blaa blaa." They mean well, but they confuse me.

I've downloaded and printed the manual on this forum and it seems to have sound advise. Your first lawyer said you weren't 'yet?' Wonder what his ruler was? I think he lived in anther bubble from the common person.

Anyway, thanks for the welcome...just wondering did you sleep before filing? Are you now? When does that come back? Can I file for bankrupted sleep?? haha

Namaste'

As for sleeping at nights, I noticed you ended your post by saying Namaste; just dwell on that word.

I also have a business.

I suspect you have made money at your business so I don't think the problem is with you or the business but with the economy. Have you thought about keeping the business? I plan on keeping our business. I can't see what we would do without the business.

The economy may be in a recession for a while or it could end up in a depression - hard to forecast.

Whatever you do, I wish you the best.