California - Filing Chapter 7, concerned about my business!
From California
I am on the verge of filing chapter 7, due to nothing but credit card debt. I dont owe any taxes or have any student loans. My debt is purely credit card debt. I went to see a lawyer and she told me to file chapter 7.
I had opened up a business about 2-3 years ago, and business did not work so well. I did my business as a DBA. I went into file bk personally which involves my business since it's a DBA and i am my business. First thing my lawyer told me was to move out and find a new place, since my last place rent was outrageous and i couldn't afford it.
So now, i had found my new place so much cheaper. i did not get my license yet for my new place, since i'm not sure about doing another DBA, or LLC. My lawyer told me it does not matter, and that i can do a DBA again. My concern is that when i file bk, my current business would go into default because of the DBA. She says it does not matter, because i have the option to resume the lease, since i signed it with the landlord. This is scary but she's been doing it for 23 years she says. I don't know to go DBA or LLC. The LLC is expensive, and sometimes i feel i should just have someone i trust attain the license as a DBA and buy it back from them down the road. She says i can still keep my business after i file chapter 7
Another thing is my bank gave me a line of credit when i first opened up my old business. I'm not sure if this gets wiped out or not being its 25k, which is maxed out. When the bank gave me the line of credit, nobody from the bank ever came over and done an inventory on what i have. If i remember they just asked for an estimated value, and it's not even close to 25k. That 25k was pretty much to pay rent and business bills. I bought all my inventory used off craiglist so there are no receipts for anything if that matters.
As of now, i don't have any assets but my car. I moved in with my sister, and sold all my furniture to help pay for my rent for my old business. I don't know what a bank can come after me for.
suggestions?
I'll check back frequently
I am on the verge of filing chapter 7, due to nothing but credit card debt. I dont owe any taxes or have any student loans. My debt is purely credit card debt. I went to see a lawyer and she told me to file chapter 7.
I had opened up a business about 2-3 years ago, and business did not work so well. I did my business as a DBA. I went into file bk personally which involves my business since it's a DBA and i am my business. First thing my lawyer told me was to move out and find a new place, since my last place rent was outrageous and i couldn't afford it.
So now, i had found my new place so much cheaper. i did not get my license yet for my new place, since i'm not sure about doing another DBA, or LLC. My lawyer told me it does not matter, and that i can do a DBA again. My concern is that when i file bk, my current business would go into default because of the DBA. She says it does not matter, because i have the option to resume the lease, since i signed it with the landlord. This is scary but she's been doing it for 23 years she says. I don't know to go DBA or LLC. The LLC is expensive, and sometimes i feel i should just have someone i trust attain the license as a DBA and buy it back from them down the road. She says i can still keep my business after i file chapter 7
Another thing is my bank gave me a line of credit when i first opened up my old business. I'm not sure if this gets wiped out or not being its 25k, which is maxed out. When the bank gave me the line of credit, nobody from the bank ever came over and done an inventory on what i have. If i remember they just asked for an estimated value, and it's not even close to 25k. That 25k was pretty much to pay rent and business bills. I bought all my inventory used off craiglist so there are no receipts for anything if that matters.
As of now, i don't have any assets but my car. I moved in with my sister, and sold all my furniture to help pay for my rent for my old business. I don't know what a bank can come after me for.
suggestions?
I'll check back frequently