Life after Chp 7

[CJD]

My husband and I started business 2 years ago. We did not break even until this year. We lost so much money the first year that we just do not have much left to go on. We will be filing Chap. 7 sometimes soon.

My question is that after filing Chap 7, you would basically have nothing left... I just wanted to get the idea how people are handling the life after filing it.

I know that we will be losing our house we own and now renting out. We will be moving out of our current residence we are renting now (too expensive). I do not know how to come up with the moving expenses and if we will be able to find a place to live. After closing the shop, we have no jobs! Please tell me how you get by after filing chap 7??

Thank you.

[justbroke]

I don't understand the main question. When you file Chapter 7, you will generally have PLENTY left, especially if you live in a gratuitous state like California, when it comes to exemptions. Of course, you need to already have "something" in order for "something" to be left. I am getting by just fine after filing. None of my possessions were taken (cars, furniture, money, 401(k), etc) and I didn't have to give anything to the Trustee.

The myth about bankruptcy taking everything from you, is just that... a myth.

[Exployer1234]

I had nothing taking from me during my chapter 7 case. It really is a myth about the courts taking everything you own. I still have all my possessions and my credit score isn't that bad. it has actually gone up almost 2 months out of BK.

I would suggest having a great plan put together. You need to plan your BK. If you have no job and no income right now, then BK is the least of your worries. Filing BK should put you in a better position after filing. Right now it sounds like you are trying to get rid of all the debt, but intern it will not help your present situation. if you do not have the money to move, then I would wait until you have a job. That way you have some sort of income coming in. The courts will look back 6 months.

[CJD]

I thought that creditors would take everything including most of the money in both business and personal accounts. I think that exemptions in NY are only $600 in the bank and motor vehicles for up to $2400 (this means that I have to pay the difference of the value of my car and what is allowed to the trustees).

I am surprised to get feedback that you are better off after filing. You all get to keep the house?

I am behind on the lease for $30,000 (2 month), franchisor for $100,000, and others totally about $10,000, credit cards maxing out $20,000.

[CJD]

I forgot to mention that I do have SBA loan of $200,000 (not late on payment so far) with my house as collateral. So, that is why I think that I will lose a lot by filing.