ANYONE WITH A BK more than $500k

[Dollar Bill]

I plan to file BK in a few months, and am growing pretty nervous. I usually take things pretty easy but for some reason am pretty nervous.

I have a large BK due to a successful business turned unsuccessful. Bk size id 800k.

Is there anyone here with large Bk amount that could shed some light on what they have endured with the BK courts for such large amounts of debt.

I know everyone is different but I just wanted to get some experiences.

[kl030505]

Mine is nothing like that. BUT, I was browsing my state bk court website today and started reading judgments by each judge... just because. Anyway, there was one about a guy who bk over $500K because of a failed business venture and he was discharged without a problem. He even got $6K in attorney fees back from his atty because his atty was kind of an ass (that's what the judgment was actually about, the guy ended up suing his own atty after his case because he overcharged him for the bk). It's just one case, but it was recent and sounds like it was a good outcome for him.

Hope you have a great attorney.

[DontBother]

When I went to my 341, one of the people before us had right at $1,000,000 in unsecured debt, but he said that it had grown to $1.3mm with all the late fees and charges. His BK was due to failed business. The trustee send him packin', requesting mucho documentation regarding his business and personal financial affairs. They continued his 341 for about a month.

[biotechsolution]

dollar bill....I discharged very close to your amount. failed business and some tax issues. was even 2 times over median income level but since it wasn't consumer didn't have any problems...just make sure your schedules show you at 0 dollars or slightly in the negative. Not one business line creditor showed up and jp morgan was in for 250K and Citi had close 300K.
But I only discharged 4K of consumer debt and that only because it was on a personal Chase card. I figured I was going to blacklisted for the business line anyway.

I had for the trustee a year of business and bank records. But I had contacted the US trustee within a few days of filing just to make sure I didn't have to file the means test.

I reccommend you do that because it will reinforce to the panel trustee that your case is a business bk and not subject to any 'abuse' conditions.

Has long as you don't hide assets and lay all the cards on the table you won't have any problems with a business bk. the only thing trustee's look for is hidden assets.

[FreshLikeADaisy]

Mine was a consumer bk for MUCH less than you so take this with a grain, but I keep hearing that large dollar amount and/or business related debt attracts the direct involvement of the U.S. Trustee in your case. I think Biotechsolution was on to something when he *proactively* contacted the UST to suss out any potential issues. I also think your main issue is doing whatever possible to avoid the appearance of fraud and/or the hiding of assets, because when the UST gets involved they look very closely for both. Good luck!!!

[emoney]

Mine was $977,000. Only Sears with a $1100 CC objected.
With good records and a good attorney you should have no problems.
regards,
emoney

[Dollar Bill]

Thank, Thank You, Thank you for all responses. I have an att I plan to use. He is very knowledgeable, and very nice person. We had 5 appts so far, he hasn't charged a dime. One thing I was comcerned ahout though, he does from what I was told...everything by hand writing. He is pretty up in age, and has been a Bk lawayer since the early 70's.

[bmcmull]

Can you request a do-over.... I think I would liquify what I could and get a new identity in europe somwhere.

[Dollar Bill]

bmcmull, I thought about that. LOL

[bmcmull]

Also I would look at more than one BK atty. They will all give you a free consultation just to clarify what the first one is telling you. If I could do it all over again I would not have used the first guy I went to. Found out alot (via law suites) after the fact. Cost me an additional 3-4k just in other atty"s legal fee's because of bad info. then cost me another 4k in (disposable income) in 2006 over taken income tax return.... Rat BSTRDS, did'nt see that one coming........ Make sure the guy you are using has time for you, seems that is the big deal here in Texas, once you pay him and he files it, he is no longer your representitive unless you re-hire him. Try getting that meeting then!!!

[Dollar Bill]

Wait a minute...are you serious? I am paying him to file and for some consultaion before filing? Is that what you mean? Then once he files, I'll need to rehire him for add'l questions or correspondence he receives for me? WOW. I never thought of that.

[bmcmull]

Wait a minute...are you serious? I am paying him to file and for some consultaion before filing? Is that what you mean? Then once he files, I'll need to rehire him for add'l questions or correspondence he receives for me? WOW. I never thought of that.

In Texas, once the atty files the BK and your case is confirmed he no longer is your atty. Should the need arise to use his services again, you would be required to re-hire him. I ran into two problems post petition. One involving a lease car that started out as a $400.00 bill that was supposed to be in the ch 13, it wasnt ended up costing me about $1600.00 with atty fees. And the 2nd w3as a home owners association who put legal fees on top of my payment that he said I would not be responsible for $300.00 tuned into $1800.00 with legal fees. Those fees only included their atty fee's not mine........ Due your home work on the atty.

[Dollar Bill]

I will. Thanks again

[butterflywings]

Mine was $977,000. Only Sears with a $1100 CC objected.
With good records and a good attorney you should have no problems.
regards,
emoney

Why did they object? That seems like a puny amount to object. What were the grounds for objecting and did you have to pay them back?

[Lindsay]

I heard that Sears used to almost always object. We had a friend who filed and Sears was his only objection too. I thought I read something that Sears was in trouble for that and had a fine or lawsuit because of it? We have a Sears card but it has no balance on it thankfully. I only used it once to buy 2 room air conditioners like 8 years ago, so it has long been paid off. LOL, fortunately for me, I really hate shopping at Sears.

We have somewhat high debt in relation to our small income. We have about $85,000 in credit card debt and an income of about $30,000. Alot of it is from high interest rates for years and having to charge household necessities while using the bulk of our cash to make minimum payments. Our lawyer said that the trustee usually looks more closely at high debt, high income scenerios because of the possiblity of assets being hidden. He didn't think we'd have a problem as our income is low.

If its a business gone bad, I think they'll be more understanding. I'm sure alot of bankruptcies are caused by business failures and the debts are always going to be bigger in that case. To be sure, I'd talk to 3 or 4 attorneys and see who you feel more comfortable about.