I am having a huge dilema and seeking some insight. I have really good credit to start with, and have never been reported as late in my lifetime. What I am facing today is a snowball that has rolled and i am caught in it. I have a business that makes about $150,000 gross profit with about $90,000 of that profit after my fuel and expenses. Now last week I picked up some bad diesel at a local fuel station and my truck repair is over $8,000.00. I called insurance company that insures fuel station, and waiting on a response. I personally do not have the $8,000.00, nor do I have any funds coming in without this truck running. I am considering BK, because I wont be able to pay my bills in 2 weeks. I have $8100.00 a month in bills, and $8000.00 in income. My credit cards total $15,000.00 & O/D is at $5,000.00. the other bills are 2 other 2009 vehicles and normal insurance and home bills. What should I do? Is BK right for me? If so what chapter? 7, 11, or 13?
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What is O/D? -
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Assuming your 8100 in bills is from running your business (purchasing parts, equipment, etc) how will BK make things better for you other then discharging the debt? How will your income improve by filing?
Here is a very basic and brief rundown between BK 7 and BK 13. Chap 13 is mainly for people who have a regular income and want to keep property like a home and it has limitations on secured and unsecured debt. Chap 7 has no limitations like a 13 but you have to qualify in one of two ways. If you file BK 7 consumer you have to pass the means test and if you file BK 7 non-consumer (business debt), you have to qualify in a different way for that (greater then 50% of your total debt is business related). In a BK 7 you don’t always get to keep your property like in a 13. Hope that helps, or at least is a good start for you in researching your situation.Comment
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