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    Need advise on filing with business

    Hello everyone, just discovered this forum tonight. Very happy I have.

    A little background on myself and situation.

    My brother and myself own a small business. It was started 3 years ago, but I replaced the original owner over a year ago. We have struggled ever since, but have continued to fight to keep the business open and everything current. Well we have hit about rock bottom, but remain current with everybody.

    We have talked to our accountants and attorney about the business and are planning to close in the next month (one way or another). Our attorney recommended us to a bankruptcy firm, and we meet with them monday. It still doesn't keep my mind from running 100 miles an hour. My brother and myself have accepted that chap 7 will not kill us (we are younger, no families, and have time to rebuild).

    I wanted to get everyones opinion on what the bankruptcy attorney may say. Here's where we stand

    50K secured business loan (secured with equipment worth about 15k now)
    35k left on lease term
    2-5k unsecured with business related companies
    7k on unsecured business credit card
    36k on unsecured personal credit cards between us

    Both have average only 750-1250/month in income over the past year with the business

    Cashed 401ks, sold home...etc to survive. No assests left at all.

    Any advise would be great - Would chap 7 be the route (would we qualify)..etc.

    Thank you, just looking for some sense before we meet with the attorney.

    #2
    Welcome to BK Forum, taco - glad you found us!

    Originally posted by tacosowner View Post
    50K secured business loan (secured with equipment worth about 15k now)
    35k left on lease term
    2-5k unsecured with business related companies
    7k on unsecured business credit card
    36k on unsecured personal credit cards between us

    Both have average only 750-1250/month in income over the past year with the business
    You didn't say what state you are in. That would help us help you better.

    Cashed 401ks, sold home...etc to survive. No assests left at all.
    I wish you had found us earlier. Your 401K is protected in bankruptcy so you could have filed and saved it if you had known. Well, lucky you are young and hopefully have time to replenish it.

    With your business being such a large part of your debt, that makes filing bankruptcy (7 or 13) more complicated.

    Meet with the lawyer you already have lined up, but also make appointments for free or low cost initial consultations with 3-4 experienced bankruptcy lawyers in your area who have a lot of experience filing consumer cases with businesses involved. You'll learn a lot plus get a good sense of what's going to be possible in your situation and what isn't.

    Keep asking questions - we'll help you sort things out as best we can. Again, welcome!
    I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

    06/01/06 - Filed Ch 13
    06/28/06 - 341 Meeting
    07/18/06 - Confirmation Hearing - not confirmed, 3 objections
    10/05/06 - Hearing to resolve 2 trustee objections
    01/24/07 - Judge dismisses mortgage company objection
    09/27/07 - Confirmed at last!
    06/10/11 - Trustee confirms all payments made
    08/10/11 - DISCHARGED !

    10/02/11 - CASE CLOSED
    Countdown: 60 months paid, 0 months to go

    Comment


      #3
      Nebraska

      Yes, the 401k, etc... we cashed over a year ago to try and save the business.

      Comment

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