Not sure whether to file or not

[petrified]

Hi Everyone,

I have been lurking for a while and trying to learn everything I can about going through a bankruptcy but I have some questions that I cannot find answers for and am hoping someone here can offer some advice.

background:

I once had a C-corp that became insolvent (not done anything about it yet). There are several debts, some of which have personal guarantees from me.

I had some family issues (mother died, brother in law going through terrible child custody battle) and loss of a major contract all at the same time. Got locked out of the building where office and all assets of business were. I ended up having a nervous breakdown and didn't leave the house for several months.

Company bank acct was overdrawn, but there was a wire transfer due that would have more than covered it. However, bank closed the account.

bank sued me personally, seized money from my personal acct. sherriff came to house to collect, instead husband gave me money to pay off the judgement.

personal acct ended up with overdraft fees and all other kinds of stuff. they closed that acct.

There were several joint credit cards - husband refinanced house and paid those off.

I am left with the looming agony of the business debt.

I recently started a very low paying job - first income I have had since 2003!

Now, I am being personally sued by a former employee for a great deal of money and a creditor of the business (who seems to have sued me personally for some reason - it was a c-corp so didn't think they could do that). Creditor managed to get a judgement against me personally and I now have to go answer about assets.

Total possible debt against me personally could be well over $100k (if employee wins his case - which is likely since I cannot afford to hire a lawyer in the state he is suing me so am doing it pro-se).

So, in order to file for Chapter 7 bankruptcy, I have to list all assets - including my husband's income. His income puts me over median income for the means test. However, he is responsible for the mortgage etc. I simply give him half my paycheck towards bills.

My questions:

1) House is safe because of Tenants by Entirety?

2) My vehicle is valued at $7k - I own it free and clear - but it is a joint asset (title is in both our names). Will I get to keep it?

3) How do I complete the Median income B22 thing? Do I have to also list my husband's debts even though he is not filing?

4) Are there different rules if my debt is all business related even though i am filing personal bankruptcy?

5) How do I treat joint assets in the Schedule of Assets?

Sorry for the long post.....I am seriously on the edge of another nervous breakdown....so any answers would be greatly appreciated.

Thanks so much!

[SinkingFast]

You can file seperate of your Hubby. His total income is added in at the start, then gets deducted out later as he's not filing. His income does come into play on expenses that he pays and you do not. Or where his earnings get contributed in on joint expenses. Like utilities bills, food, and such.

If the car is titled in both names, then you only have to concern yourself with half the equity. Does your State allow for a $3500 vehicle Exemption?

Same thing with the house. Your half of the equity will be "on the block" so to speak. Not Hubby's.

I would STRONGLY suggest you chat with at least 3 attnys about your situation. Generally, Consults are free and you can learn a lot.

Personally, your situation sounds complicated enough, that I'd suggest you use an attny to file your BK for you. Whether or not you can even file a personal Ch 7 with intermingled Business/Personal Debt might be tricky at best.

Many posters here know quite a bit about personal BK, but not a lot of us have experience with Business BK.

[petrified]

SinkingFast - thanks for the reply!

I do have an attorney, and I have paid his fee. Reason I am asking here is that he does not seem too concerned about things and I am now worried that his "lack of concern" will translate to mistakes being made. I want to ensure that my husband is not impacted because of my mess so want to make sure I do everything correctly.

I believe the house is safe because Virginia has 100% exemption for Tenants by Entirety.

Vehicle - VA has a $2500 exemption. I was wondering if I can reduce value because of wreck damage that wasn't repaired (rear bumper) and need for new brakes and tires?

Attorney said not to file business bankruptcy because company is insolvent already. He said just to let it die.

Unfortunately, attorneys I have spoken to about the business side of things all wanted hefty retainers which I couldn't pay, so that is why business is dead. Price to file for business bankruptcy is also out of my ability to pay.

I feel like such a complete failure :-(

[SinkingFast]

Your attny has given you similar advice to what others have posted. I remember one poster saying his attny advised to let the business die a natural death and then file personal BK. Based on that, sounds like your attny is on the right track there.

We did that with one vehicle. Noted body damage that needed repair. It almost completely eliminated the value of that car for us. So if you have body damage, go get a couple of repair estimates. Then you have a concrete $$ figure to reduce your vehicle's value by.

Attnys are kinda like doctors. They act like it's no big deal because they are used to seeing this stuff. We, on the other hand, are not used to living with this stuff. Unless you know the right questions to ask, and/or they have the time to spend, you're not gonna get much info from any attny.

Some keys to look for are,........... Does your attny or his/her assistant respond to your calls or emails? When they give advice and you follow it, do you have positive results? If your attny is doing a good job for you so far, you've probably made a good choice.