Do Banks deal?

[moose568]

I'm closing my business soon and I owe $60,000. I'm not behind on anything. I don't want to file and was wondering if a bank would accept a full payment plan over 7-8 years?

[nc73]

I'm closing my business soon and I owe $60,000. I'm not behind on anything. I don't want to file and was wondering if a bank would accept a full payment plan over 7-8 years?

It's worth a try but I think whatever they take off will be reported as taxable income, 1099. Depending on your circumstances it might just be easier to file BK.

[moose568]

I want to keep all my assets. I have 7 years left on the loan so would they let me not file and keep making the normal payments with my business closed. I can afford to keep making payments.

[nc73]

I want to keep all my assets. I have 7 years left on the loan so would they let me not file and keep making the normal payments with my business closed. I can afford to keep making payments.

Oh you can file for sure but they would probably give you a 13 depending on your income and expenses. 5 years of hell if you get a 13. Your payments over 5 years could be any amount up to 100% of your debt.

[moose568]

Thats my point. Why file and screw up my life and credit(800+) if I'm gonna pay it back anyway.

[lrprn]

Thats my point. Why file and screw up my life and credit(800+) if I'm gonna pay it back anyway.

Moose, until you go through the Means Test, you don't know which bankruptcy chapter you qualify for. And even if it's Ch 13, most 13ers don't pay back even half of their debt - the rest is forgiven. There are also other Ch 13 advantages that could be helpful in your situation.

Set up 3-4 appointments with experienced bk lawyers in your are for free or low cost consultations. Don't guess about what is best in your situation - go find out!

[jp2861]

Moose, you need to see a lawyer. As lrpm said, there's more to know, so you should seek legal help. Many folks have filed Ch13's and it's not 5 years of hell. It serves its intended purpose for many filers. As far as your payments being 100% or even close to what they are now, in a 13 that's just not going to happen. If that was the case, then people would just make arrangements to pay it off and avoid BK altogether.

Start by talking to your banks. If there doesn't seem to be a workable solution then schedule a few free consultations and see exactly what your options are.

[Granny]

Moose,

I see your point and the only thing you can do is visit with your local banker and ask if they will re-structure your notes. If they won't then you can pursue the bankruptcy idea. My husband would re-finance business notes all the time, especially those that had balloon payments.

I would think that as long as you are current with the payments, and since you aren't talking about cc debt, it won't affect your good credit to re-finance/restructure a note and to continue to make the payments on time will only help your credit.