So, I have been saving to file for bankruptcy. I have a small retail business, sole proprietor--not incorporated--that is failing. I consulted a lawyer back in March who told me that since I wasn't behind yet, and still had sales/income I wasn't bankrupt YET--but I would be. His advice was to liquidate on my own and close. So, I stopped paying some of the cards in order to be able to get enough money set aside for a bankruptcy attorney.
Skip ahead to now and I am 90 days late on the latest cc, and 30-60 days late on most of the larger cards. I am still paying the cards with the smaller payments as I can afford them. I have an appointment with another lawyer on Friday--and hopefully I will retain a lawyer and start the process at that point.
I plan to file individually. I am married, but the debt that I have accumulated was for the business that I started a few years ago, and my husband was an authorized user on my cards (never actually used one, however) but he didn't sign any contracts, etc. Also, the house is in his name only (inherited) and the cars are likewise in his name only. So, my filing separately makes the most sense. His credit score is still very good and mine is as bad as expected after going 90+ days without paying on at least one card.
My debt is approx 67,000 with one remaining vendor that I owe 10,000+ to. I have been working on paying off all vendors, but will not be able to liquidate enough to pay off this last account. I have been trying to liquidate inventory for about 2 months now, but with the economy as slow as it is in our area, even trying to sell merchandise at cost isn't getting it sold.
After I close the business--hopefully by next month, I will not be employed again for a few months. I expect to go back to being a substitute teacher in the Fall. I don't know how this is all going to play out with filing for bankruptcy. Sub pay is very iffy--some weeks you get assignments, some you don't. If, for some reason--such as my husband's income--which is around 42,000--when they figure the median, etc.--I end up in a Chapter 13--would they wait and see what my average income is before they decide on a payoff amount? I am wondering about this.
Also, is going back to work a requirement of filing for bankruptcy if I don't qualify for a Chapter 7? I have depression and anxiety, and have recently had serious marital problems, and working has been a huge challenge for me. It's one of the reasons, aside from not being profitable, that I am closing up shop and filing. The past year has been horrible, and some days I can't even stay at the shop til closing. I really need to get out from under this business, get myself healthy again, and start over.
Has anyone had this experience--filing for--hopefully--a chapter 7 with a mix of personal and business debt from a small business/sole proprietorship? What should I expect? Because I will be closing the business, I won't have any income soon. This is why I hope to file a Ch 7.
Any thoughts, advice, comments? Thank you.
Skip ahead to now and I am 90 days late on the latest cc, and 30-60 days late on most of the larger cards. I am still paying the cards with the smaller payments as I can afford them. I have an appointment with another lawyer on Friday--and hopefully I will retain a lawyer and start the process at that point.
I plan to file individually. I am married, but the debt that I have accumulated was for the business that I started a few years ago, and my husband was an authorized user on my cards (never actually used one, however) but he didn't sign any contracts, etc. Also, the house is in his name only (inherited) and the cars are likewise in his name only. So, my filing separately makes the most sense. His credit score is still very good and mine is as bad as expected after going 90+ days without paying on at least one card.
My debt is approx 67,000 with one remaining vendor that I owe 10,000+ to. I have been working on paying off all vendors, but will not be able to liquidate enough to pay off this last account. I have been trying to liquidate inventory for about 2 months now, but with the economy as slow as it is in our area, even trying to sell merchandise at cost isn't getting it sold.
After I close the business--hopefully by next month, I will not be employed again for a few months. I expect to go back to being a substitute teacher in the Fall. I don't know how this is all going to play out with filing for bankruptcy. Sub pay is very iffy--some weeks you get assignments, some you don't. If, for some reason--such as my husband's income--which is around 42,000--when they figure the median, etc.--I end up in a Chapter 13--would they wait and see what my average income is before they decide on a payoff amount? I am wondering about this.
Also, is going back to work a requirement of filing for bankruptcy if I don't qualify for a Chapter 7? I have depression and anxiety, and have recently had serious marital problems, and working has been a huge challenge for me. It's one of the reasons, aside from not being profitable, that I am closing up shop and filing. The past year has been horrible, and some days I can't even stay at the shop til closing. I really need to get out from under this business, get myself healthy again, and start over.
Has anyone had this experience--filing for--hopefully--a chapter 7 with a mix of personal and business debt from a small business/sole proprietorship? What should I expect? Because I will be closing the business, I won't have any income soon. This is why I hope to file a Ch 7.
Any thoughts, advice, comments? Thank you.
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