My husband and I have finally decided it's time to file for bankruptcy. We've hired an attorney we both feel comfortable with.
We are passing the means test (phase II) and she is going to file chapter 7.
Most of the debt is from business expenses that we placed on personal credit cards. I kept thinking that we can make the payments if I kept working hard at building the business. This economy is making it very hard to do that! And to add fuel to the fire, DH had to take a lesser paying position.
Now, we have just enough to cover our basic living expenses (food, housing, utilities, etc) Business nor I have been making money since April 10, (it's a school program and only generates money during the school year)
Now that school is back, I have made commitments for fall programming and money is coming in. However, that money is going towards operating expenses for the next 3 months.
the lawyer wants me to drain my business account of cash before she files. What do I need to do with the cash so the trustee doesn't get to it? That money is earmarked for rent, payroll, supplies, taxes until December. I can't technically spend it, i don't want the trustee to get to it (so I don't get caught with no money to pay those expenses). Money only comes in during September and January and was not managed properly at the end of the revenue cycle to pay for the operating expenses - hence it was charged to make it to the next month.
Thanks for any advice!
We are passing the means test (phase II) and she is going to file chapter 7.
Most of the debt is from business expenses that we placed on personal credit cards. I kept thinking that we can make the payments if I kept working hard at building the business. This economy is making it very hard to do that! And to add fuel to the fire, DH had to take a lesser paying position.
Now, we have just enough to cover our basic living expenses (food, housing, utilities, etc) Business nor I have been making money since April 10, (it's a school program and only generates money during the school year)
Now that school is back, I have made commitments for fall programming and money is coming in. However, that money is going towards operating expenses for the next 3 months.
the lawyer wants me to drain my business account of cash before she files. What do I need to do with the cash so the trustee doesn't get to it? That money is earmarked for rent, payroll, supplies, taxes until December. I can't technically spend it, i don't want the trustee to get to it (so I don't get caught with no money to pay those expenses). Money only comes in during September and January and was not managed properly at the end of the revenue cycle to pay for the operating expenses - hence it was charged to make it to the next month.
Thanks for any advice!
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