Question Bankruptcy

[roni]

I'm new to this site. I am considering declaring BK. I don't know if I could to 11 or 13. I own a business with a business loan but I ain't making enough money to pay the business loan. I am trying to sell the business but I don't think it will sell. So my BK will be for the business loan. I have some other collections and credit cards totalling $50K. My business loan is $160K. I can get a job outside my business to make a living and that's what I want to do. The economy has slowed my business so much I can't even pay myself right now if I pay my business loan payments and my overhead. I have stopped making the the business loan payment and the bank has filed a civil suit for the loan. I am in NJ. I am very green in this arena? What are my options. I am a single mom of one.

[DeadManCrawling]

Chapter 11 is for businesses which plan to stay in business, usually, and need to reorganize to do so.

Ch 13 is for people who wish to pay back some of their debts, or for people who wish to hang onto nonexempt property by making payments to the BK court to get caught up. There are many other functions of a Ch 13, but these are the main ones. Would allow someone to save a house that is behind in payments, for example.

You may be able to do a Ch 7, which would wipe out all debt, business and personal. The company would be liquidated and any proceeds given to your lender for the business. Everything else would be wiped out, you would have no further obligation to business or personal debt. This may be your best option, if you are under the median or over but have enough expenses to pass the means test.

Since you plan on giving up the business anyway, I am not sure a 13 is the way to go, unless you have significant assets to protect or need to get caught up on mortgage.

Please share more details, including your income and expenses on a monthly or annual basis. Others will chirp up with more info if you can share some more details.

Also, it looks like your percentage of business debt is high enough to allow you to skip the means test, but others can clarify that point.

[roni]

I am not sure how to answer the income part because I don't or really can't pay much of an income to myself from the business especially lately. But so far in my quickbooks profit and loss statements it shows I have paid myself $60K. I do not own a home. I own my car. I rent an apartment. I have some stocks (investments) for a savings and some precious metals investments totaling $30K. I don't want to lose these investments. So with no home or mortgage and no car loans can I walk away from this. I am due to start a job in January for 3 times what I am making now salary. I am a doctor. So my practice is drowning and killing my income potential. That is why I want to start over. I have student loans to pay which I know can't be discharged in bankruptcy.

I really want drop this office and that debt. I could pay back my personal debt.