Greetings to all! 
First, I'd like to say I've been reading several posts and have found them quite useful and have eased my mind concerning my decision to file BK.
Second, a bit of advice: we've all heard the saying you shouldn't go into business with friends. That saying is 110% DEAD ON! That's why I'm here today! Stupid me. I had faith that my friend wouldn't hose me. Wrong.
Next, a bit of a question mixed with some background. My "friend" and I decided to start a business in 2006 installing home theatre systems and servicing telephone equipment. The business was structured as such: 1. He is "Sole Proprietor/owner". 2. I was the office manager/bookkeeper. 3. We had one employee doing telecom service calls. We signed on a $25K business credit line from a local bank to get things rolling. All was well until Aug 2008 when the market/economy fell apart. We had to terminate our employee in July due to the loss of business.
Here's where things get tricky and where things fall apart:
Our credit line was due for renewal in Dec 2008. It was almost maxed out at $24,xxx. At that time, we were left with the choices to either 1. close the line of credit and refinance elsewhere (an impossibility since my "friend's" credit is shot) 2. set up payments on a 5-year amortization loan (not possible with the debt load I already had and the fact my "friend" decided to sit around and watch TV as his profession). 3. Renew the credit line for the next 6 months and pay "interest only" payments. (Which is what we chose to do) We have NEVER missed a payment or been late on the payments, and now the loan is up for renewal. Which brings me to why I'm here. I cannot afford to singlehandedly pay off the debts of a business I do not own and support my family. Hence, my decision to file Ch7. My "friend" is yet unaware that I have decided to do this.
Here's my question: What are the chances the bank will try and "object" to my filing Ch7 on the credit line, since it's technically been only 5 mos since renewal? I am trying to avoid re-signing on the credit line which is due May 15, then filing BK, which is an OBVIOUS fraudlent transaction. I don't believe I had many acceptable options in Dec. when I had to re-sign, so I'm not certain what could/would happen now. Needless to say, I'm a bit concerned. Any thoughts would be most appreciated.
BTW, I have spoken to an attorney, and he just simply said to have a very accurate balance sheet from the business ready to go. No comments from him otherwise, which is why I'm concerned.....
Thanks!
First, I'd like to say I've been reading several posts and have found them quite useful and have eased my mind concerning my decision to file BK.
Second, a bit of advice: we've all heard the saying you shouldn't go into business with friends. That saying is 110% DEAD ON! That's why I'm here today! Stupid me. I had faith that my friend wouldn't hose me. Wrong.
Next, a bit of a question mixed with some background. My "friend" and I decided to start a business in 2006 installing home theatre systems and servicing telephone equipment. The business was structured as such: 1. He is "Sole Proprietor/owner". 2. I was the office manager/bookkeeper. 3. We had one employee doing telecom service calls. We signed on a $25K business credit line from a local bank to get things rolling. All was well until Aug 2008 when the market/economy fell apart. We had to terminate our employee in July due to the loss of business.
Here's where things get tricky and where things fall apart:
Our credit line was due for renewal in Dec 2008. It was almost maxed out at $24,xxx. At that time, we were left with the choices to either 1. close the line of credit and refinance elsewhere (an impossibility since my "friend's" credit is shot) 2. set up payments on a 5-year amortization loan (not possible with the debt load I already had and the fact my "friend" decided to sit around and watch TV as his profession). 3. Renew the credit line for the next 6 months and pay "interest only" payments. (Which is what we chose to do) We have NEVER missed a payment or been late on the payments, and now the loan is up for renewal. Which brings me to why I'm here. I cannot afford to singlehandedly pay off the debts of a business I do not own and support my family. Hence, my decision to file Ch7. My "friend" is yet unaware that I have decided to do this.
Here's my question: What are the chances the bank will try and "object" to my filing Ch7 on the credit line, since it's technically been only 5 mos since renewal? I am trying to avoid re-signing on the credit line which is due May 15, then filing BK, which is an OBVIOUS fraudlent transaction. I don't believe I had many acceptable options in Dec. when I had to re-sign, so I'm not certain what could/would happen now. Needless to say, I'm a bit concerned. Any thoughts would be most appreciated.
BTW, I have spoken to an attorney, and he just simply said to have a very accurate balance sheet from the business ready to go. No comments from him otherwise, which is why I'm concerned.....
Thanks!