Hello all:
I am in that gut wrenching state of constant panic since making the decision to file for BK. I met with an attorney a few days ago and feel pretty good about working with him, a few others I talked to were not as helpful. Anyway, my situation is a little different as I own a failing business that got me into this debt mess- and with no chance of recovering and with the need to protect my home we have decided to file chap7. We are an s corp but my husband and I are the only officers/owners and because we are a new business we had to personally guarantee everything from the lease to equipment leases, etc. so we are personally on the line for everything. Because of this the atty. says filing Chap 7 personally is the way to go. As of right now everything is up to date with the exception of my rent on the store which I cannot pay this month and is already 10 days late. Here are my questions:
1) Because it is inevitable that we are filing, do I just stop paying my cc bills, loans etc?
2) Don't you have to be worried about being selective as to who you pay and who you don't?
3) On the personal guarantee on my store's lease (w/ 3 1/2 yrs left on it)
it statesI f the lease is disaffirmed by a trustee in bankruptcy for tenant, guarantor agrees, at the election of the landlord, either to assume the lease and perform all of the terms or enter into a new lease identical to the terms of the old lease. It says all duties and obligations are still binding to the guarantors. DOes that mean that even if I file then after it's all over I am still responsible for the lease?
I haven't paid the retainer to my attorney yet so I don't know if he will answer these for me until I do, so I thought maybe you all could give me some answers.
I am just so afraid that the landlord will try to take my house- anybody out there have any answers or thoughts?
Thanks
I am in that gut wrenching state of constant panic since making the decision to file for BK. I met with an attorney a few days ago and feel pretty good about working with him, a few others I talked to were not as helpful. Anyway, my situation is a little different as I own a failing business that got me into this debt mess- and with no chance of recovering and with the need to protect my home we have decided to file chap7. We are an s corp but my husband and I are the only officers/owners and because we are a new business we had to personally guarantee everything from the lease to equipment leases, etc. so we are personally on the line for everything. Because of this the atty. says filing Chap 7 personally is the way to go. As of right now everything is up to date with the exception of my rent on the store which I cannot pay this month and is already 10 days late. Here are my questions:
1) Because it is inevitable that we are filing, do I just stop paying my cc bills, loans etc?
2) Don't you have to be worried about being selective as to who you pay and who you don't?
3) On the personal guarantee on my store's lease (w/ 3 1/2 yrs left on it)
it statesI f the lease is disaffirmed by a trustee in bankruptcy for tenant, guarantor agrees, at the election of the landlord, either to assume the lease and perform all of the terms or enter into a new lease identical to the terms of the old lease. It says all duties and obligations are still binding to the guarantors. DOes that mean that even if I file then after it's all over I am still responsible for the lease?
I haven't paid the retainer to my attorney yet so I don't know if he will answer these for me until I do, so I thought maybe you all could give me some answers.
I am just so afraid that the landlord will try to take my house- anybody out there have any answers or thoughts?
Thanks