Considering CH7

[Gareas]

Hello.

I am considering filing for CH7.

My income in 2007 was $55,000.

I own a condo which is 3 months behind on payments and I am planning on letting it go into forclosure. Combined with 1st and 2nd, I owe $378,000 with monthly payments of roughly $2,500. I've had this loan for just over a year.

I am financing a car valued by Kelley Blue Books suggested dealer price of $33,300. Private party value of $27,000. I owe $23,571 and am current on payments. Monthly payments are $429. I would like to keep the car. I've had this loan for 5 - 6 months.

I owe $17,329 to AMEX line of credit. This is the reason I am considering chapter 7. I paid a fraudster lawyer $20,000 and he has dissapeared. This is current.

I owe $1,750 on AMEX credit card. This is current.

I owe $811 to a Discover credit card. This is current.

I owe $678 on a Visa card. This is current.


I am a sole proprietor and use a DBA. I work for a company and receive 1099s. How will my income be verified? If checks are written to my DBA and not to my name, is this verifiable by the courts/trustees/creditors?

Will I be able to keep my car?

Thanks in advance. Please let me know if I need to provide additional details.


/edit

Also, if age is a factor at all, I am 22 years old.

[Minnymouth]

Is your debts personal debts or business debts??
Was your auto purchased thru your company?

You need to contact or use an attorney that is a bankruptcy attorney that also deals in bankrupties that involve privately owned businesses.

An attorney can tell you what options are available to you and whether you will qualify for a Chapter 7 or must do a Chapter 13...

Keep us posted....

[Gareas]

I've made all of my expenses on business accounts but they are all personally gauranteed. The auto is registered to me personally, but I do write it off as a business expense due to the nature of the my work.

[Gareas]

I will be speaking to an attorney on Friday. More input would be appreciated.

[FreshLikeADaisy]

Gareas, it's hard to say with business bankruptcies because there's so much more involved than a straightforward no-asset consumer debt Chapter 7, you really DO need an atty for this. BUT, many attys give bankruptcy consulations free, so avail yourself of several of those -- not just one -- and see what they have to say.

Also, that shyster attorney thing.... have you made a formal complaint to your state's Bar Association yet? That's another thing that your new (and hopefully competent) atty can help you with. If you file Ch 7, the trustee could also view your payment to this atty as a "preferential payment" and go after it himself. So that alone is a fairly significant factor in everything you've said.

I wish I could help you more, but any advice I gave you would be of questionable value, since I definitely don't have the business piece of the puzzle. But I do wish you well. Good luck!!!

[Gareas]

Thanks for your reply. I do have an appt with an attorney tommorrow and will definitely speak to him.

In answer to your question, the state bar actually informed me by mail of of the fraudulent activity the attorney had taken part in. As of now, he is currently in jail under numerous counts of felony offenses. I tried to dispute the charge with AMEX but it was denied as it was paid by check and not by credit card. If I could only find a way to make this charge dissapear, I could avoid BK indefinitely. Payments for this account are over $1,000 per month.

[FreshLikeADaisy]

Holy cow. What a mess. It MUST be bad if *they're* notifying *you*. At least the bastard's in jail for the moment.

It's one thing to be forced into bk by bad choices and/or circumstances. I think it would be a lot harder for me to take if it were the actions of an individual. You have my best wishes. Good luck!!!!