Hi. I have been thinking about a the possibility of a chapter 7. I'm tired of the debt I have hanging over my head and don't know what to do. I have seen a couple lawyers and they all tell me something different and hoping anyone here has advice for me. But here are the details:
I had a company that went out of business a few years ago in 2012. I signed a personal guarantee on a $600,000 business loan. Obviously there was no way I could continue payments on that business loan. My wife and I own a house with some positive equity (mortgage) and two cars (loans) and have two kids. All of my debt is business related (I also have a credit card I use daily for gas that is about $5,000). I was told I do not have to pass a means test by all the lawyers I spoke to because my debt is primarily business debt. I live in Texas and my only savings left is the money in my 401k. I now have a job that pays me $100k(before taxes) My wife also works and our combined income is now $200,000 gross. This business debt is the only loan that I am not current including another credit card with $48,000. Most of the lawyers agreed that I should have no problem filing a chapter 7 because its a business loan and I have no assets that could repay that except one.
The one lawyer seemed to think our household income was too much and filing a chapter 7 was not in good faith and that I should try to settle with the bank through $50K in my 401K.
My questions are:
1. Can I file a personal chapter 7 to get rid of this business loan and let me restart my life w my family? The three other lawyers didn't think it was an issue, but it's the one who did that I was concerned with.
2. I need a new car as mine is about to crap out on me. I was contemplating buying a new car. What is the threshold of buying a new car with warranty that wouldn't cause issues with the trustee?
I had a company that went out of business a few years ago in 2012. I signed a personal guarantee on a $600,000 business loan. Obviously there was no way I could continue payments on that business loan. My wife and I own a house with some positive equity (mortgage) and two cars (loans) and have two kids. All of my debt is business related (I also have a credit card I use daily for gas that is about $5,000). I was told I do not have to pass a means test by all the lawyers I spoke to because my debt is primarily business debt. I live in Texas and my only savings left is the money in my 401k. I now have a job that pays me $100k(before taxes) My wife also works and our combined income is now $200,000 gross. This business debt is the only loan that I am not current including another credit card with $48,000. Most of the lawyers agreed that I should have no problem filing a chapter 7 because its a business loan and I have no assets that could repay that except one.
The one lawyer seemed to think our household income was too much and filing a chapter 7 was not in good faith and that I should try to settle with the bank through $50K in my 401K.
My questions are:
1. Can I file a personal chapter 7 to get rid of this business loan and let me restart my life w my family? The three other lawyers didn't think it was an issue, but it's the one who did that I was concerned with.
2. I need a new car as mine is about to crap out on me. I was contemplating buying a new car. What is the threshold of buying a new car with warranty that wouldn't cause issues with the trustee?
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