Business Bankruptcy Law | Small Business Bankruptcy Laws

I have been in this relationship for six years, three of it married. When I met him, he was going through a bankruptcy for a dot com he had started after he left a mid level position at a software company. We lived in a little town at this point in time where the economy was not very vibrant and we made a fine living there, but only in comparison to the economics of scale. Both frustrated with what life had to offer us there, we moved half way across the country to a town of 70,000 people. He continued with the small business he had started and tried to make it grow – mostly with money borrowed on my credit cards. He racked up ,000 worth of debt on a credit card of mine that I didn’t even know that he was using. I was called by the credit card company because it had gone over limit with no payment. This was many years ago, and of course I was livid. But not livid enough to leave. I stayed and supported him in this business of his that has never turned a dime. I thought that he had finally come to terms with the notion that he saw that he was toiling away 60-70 hours a week at a business that was not worth it, but his ego has the best of him and he cannot see that it is never going to be a viable business. He keeps working on new ideas, going to venture capital conferences, etc to keep this thing alive – but in reality I support him. He makes less than a gas station attendant although he has an mechanical engineering degree and is a database website developer. It has been six years. I went ,000 in consumer debt to finance this business. I make about ,000 a year and can pay my bills without him, including the debt payments. (Although, if divorced I would hope that there could be some sort of payment plan, although I don’t count on it since he hasn’t been able to make payments on that debt while we are married.) The house is in my name because his credit was bad and I typically make the mortgage payment myself.
The complicated thing is that I love this guy. We think on the same level, we both enjoy the same things. We are avid whitewater kayakers, back country skiers, and mountain bikers. He is funny and charming and I love spending time with him. But I have lost my patience concerning our finances, as I see that he is a bit of a lunatic in the belief of this business of his. The question is, do I leave or stay? I am leaning towards leaving as the definition of insanity is to keep doing the same thing and to expect different results and I keep expecting him to change – and I don’t think he can. Any thoughts on this matter?

*1)Have you ever filed for bankruptcy?
Yes
No

*2)If so, why did you file for bankuptcy?
Gambling problem
Shopping problem
Job loss
Theft
Other (Please Specify):

*3)How old were you?
18-25
26-35
36-50
51-70
71-^

*4)How many credit cards did you have at the time?
1-3
4-7
8-11
12^

*5)Did you become debt free after declaring bankruptcy?
Yes
No
Other (Please Specify):

*6)What chapter of bankruptcy did you file for?
Chapter 7
Chapter 11
Chapter 13
Other (Please Specify):

*7)What was you marital status?
Single
Married
Divorced
Widowed

*8)What did you file bankruptcy under?
Business owner
Consumer
Other (Please Specify):

*9)Are you currently debt free?
No
Somewhat
Yes
Other (Please Specify):

*10)Was your credit scored extermily effected?
Somewhat
No
Yes
Other (Please Specify):

I am a sole proprietor with a small business. I opened a checking accout at Bank of America for my business so that my customers could pay my company with checks/credit cards. If I file personal bankruptcy (Chapter 7), will my business checking account be frozen?

We don’t wish to escape our responsibilties. We prefer to pay off the debut rather than declare bankruptcy. We are considering a Consumer Credit Counseling service proposal to pay off the debut in 5 years with huge payments. It would not be a loan. They negotiate lower interest with the card companies. Will this hurt our credit big time? It is going to be tough on my small retail gift business. We won’t be able to have credit cards. Is this smart?

I couldn’t get a loan for my small business and I endup using all my credit cards to cover team, supplies, trips for our team riders, rent, goods and services, some equipment, etc..
The business was as sole and all the card were on my name. So is my personal line of credit.
I was hoping that it will payback the bills and didn’t go that way.
I don’t have really enough to pay all this creditors.
Im sending late payments when I have the money to do it.
Can I file bankruptcy? Am I able to file for chapter 13?
I want to start fresh again.

It’s ok this is just a example, Been living with a woman that I don’t really love; not married and unemployed. She has been working 2 jobs making good money that she spends the hell outa of once she does get paid and comming to me asking for more money I don’t have. I havn’t been able to find a good job or career. Did manage to save the house without bankruptcy by using up credit cards and giving her son a car to go to college plus, still making the house payments and paying for food. Now that the housing market has made a huge crack with falling prices, my house is worthless. Won’t sell the house for nothing cause I know you can’t go build a house for less. Been trying to get her to sell the house now going on over 2 years. She finally agrees that we should sell the house now that I’m ,000 in debt. Phones at my house rings off the hook from crediters morning, day and night. Spoke to several lawyers that can handle my case for credit bankrupty chapter 7 for erasing my debt but, they say it will take 10 years to restore my dept and cost me 00 in legal fees. Not to mention if I’m found guity during the case for perjury as all people face during bankruptcies.
It’s a huge mess and it just keeps getting worse since credit card companies keep charging for higher interest rates and finance charges cost of living keeps going up too. Before, I can get the money needed for the lawyers the amount will grow to over 100 thanusand dollars by the end of the year from not having a job. Had the creditors left me alone and stop calling, my woman would have stop spending and would’ve got the job. Would have made 00 on AOG since I had 50000 shares at .05 and went to .20 last year with a local invested brokage company. I’ve made lots of money in my time even doing 4 for 1 stock splits making 0000 off of 00 investments and keeping a job. If I had it to do all over again, would have never sign my name on a contract to buy a house for investment with my lady friend. The plan totally failed when the woman fail in love with the house…The same thing is going on all across this nation of ours as the government continues to help the banks, car companies and finanial companies. They should be giving billions of dollars to the people to spend on paying back debt. Shame on America! If the people had the money to put back into the system this would create jobs, stop forclosures, payoff credit cards and end the worse crises in history. Tax payers could pay back money they owe to the IRS or Federal Government and it is very important to pay back those taxes that build our bridges, roads and highways. Thou we continue in the wrong path with hardship and with new leaders "God Bless Thy" to lead this country. So, look for more of the same and worsier times. Anybody that can lead me in the right path is welcome, I’m here to help you anwser these questions.

1. Does it make since to give money to a failing president or CEO of a company?

2. How can giving money to Corporate America solve the problems using bailout money if noone, buys cars, houses and theirs no jobs in the job market to drive our economy?

3. Should the adults or people rich and poor recieve Ten’s of billions of dollars each with equal 50 to 100 thausand dollars in bailout money which could pay off some mortages and save thousands of people from being homeless?

Note: This money should be required to pay back only bills or debts that are outstanding if owed. If no money is owed the adult can use the money for anything such as food, cars, to buy houses, business and ect to recycle throughout our economy.

Remember, everthing that is purchase, ever 1 cent that is spent and saved goes back into the system to create jobs, pay bills and pay taxes that build america and the United States of America…

Sincerely,
The Invincible Charlie

This is for my friend – not me. But I don’t even know where to begin to help her find answers. She was in a long-term relationship with another woman. They had been "married" four years ago. She moved into the woman’s house. They refinanced and put the house totally in my friend’s name. Now, 4 years later, out of the blue, the girlfriend dumps her and kicks her out of the house.

The girlfriend is living in the house, NOT paying the house payment, my friend is getting legal foreclosure notices. She cannot pay for the house by herself and has no credit to refinance or anything. It is my belief that they owe more on the house than it’s worth. They tried to sell the house a year ago and failed. The house is currently on the market, but it probably won’t sell – or it won’t sell for the money they owe.

The girlfriend is living there with her adult daughter. They are not paying anything that we know of. All the utilities are also in my friend’s name. The two cars they both drive are in my friend’s name (cars for my friend and her girlfriend – my friend is going to keep her car and the girlfriend wants to keep the one she is driving). They also have loans and credit cards together.

Their marriage was (of course) not a legal one (we are in Kentucky) and they had no legal papers that dealt with any kind of breakup. I say my friend needs to talk to a real estate lawyer at the very least.

Has anyone ever been in a situation like this or do you have any suggestions on where to turn for advice?

What I think:

1. I think my friend needs to draw up a document on the house that says if the house sells for more than they owe, they split the extra 50/50 (this will never happen in today’s housing market). If the house sells for less or is taken by the bank, they need to split the amount owed 50/50 and pay it off.

2. The girlfriend needs to figure a way to (A) pay off the car loan for the car she wants to keep or (B) get the car loan in her name only.

3. My friend needs to make the girlfriend sign a piece of paper about the utilites stating that she will pay them until she leaves the property. This way, if she fails to pay them, I am thinking that my friend could take her to small claims court.

More info (sorry so long): My friend has filed bankruptcy in the last 10 years, so that is not an option. She also makes very little money and has a child to support by herself (receives no child support or other help). The girlfriend makes more money and has more education than my friend. The girlfriend also has not been friendly during the breakup. She has stiffed me on a business arrangement before and I have no doubt she would lie, cheat and steal to protect herself and get out of paying money.

So, that’s the background. What would you do?

Instead of bailing out the large banks who caused this mess I have a real solution.

Freeze all foreclosures. Legislate that the money that would otherwise go to a "bailout" to banks, be given to the lending institutions that the foreclosing property owners owe in back payments to make them current, so they can start from scratch. Do not include mortgage brokers but the direct banks involved, so there are no closing costs, title searches or that litany of costs typically incurred in refinancing.

Restructure the loans for 40 or 50 years if necessary so that the new payments will be lowered (yes people will die before it is paid, but leave that to the heirs to decide to keep the property and continue payments or sell it).

Provide the lowest possible interest rate at .01% above the cost of the bank loan based upon the wholesale interest rate. Prevent the selling of any loan on the secondary market to any institution that is not solvent to again prevent another disaster. This way, people get to keep their home, lower their payment and the bank still gets its cash flow that they need to stay in business.

Then, legislate that the negative credit reports of these distressed homeowners be erased; with the stipulation that it only include home mortgages; not credit cards or any other kind of debt.

Finally, if all else fails, repeal the Bush bankruptcy code so that individuals can claim bankruptcy if they must, and make it so that one does not have to hire a lawyer (which they cannot afford) in order for it to be discharged. It’s easy for a big bank to do it, so why shouldn’t it be easy for me?
My plan does limit compensation to CEO’s. The reason I place the money toward the distressed homeowners is because it would be less expensive than 0 billion. If we "bailed out" these predatory lenders, it would send a signal that we will do it again.

The people who received these loans are not at fault. The banks told them (ME) that they qualified and that they would refinance these loans later, "No problem" they said. Then when it came time to do that, the banks said, "You don’t qualify". My three year ARM was ABOVE prime rate at 6.76% to adjust to 8.9% in 3 years. Didn’t tell me that I couldn’t refinance before that without paying a 00 penalty. These were predatory loans that consumers knew nothing about. Why would a bank lend me money if they KNEW couldn’t be paid back? I paid my loan on time every month + . Then tell me that I don’t qualify for a new loan? Because I put 30% down and they wanted my house to sell for a profit.

We let all our credit cards gowhen we claimed bankruptcy. I wish I would have kept one because we need it for a small business we have.

My bf is in biiiiiiiig trouble financially! he owns his own contracting business, but is head over heels in debt! he owes 50,000 in credit cards, he sent his cousin the money to purchase land and the cousin run off with it! we went to see a lawyer yesterday and he said he couldn’t file for bankruptcy as he has no proof of sending that money! now my question is: how does he get back on his feet when his business isn’t doing that well because of the economy?

. I am a 63 year old; I am in a lot of trouble. In 1997, I opened a vacuum shop, Bargain Vacuum Store. I worked seven days a week to build my business. After a move to 4714 Western Ave, Doug Higging came into my shop, we talked and he told me he just received a Masters degree in business and explained that he was looking for investors in real estate. I told him that I had A credit and he told me he been working in real estate for twenty years and he was getting ready to buy an apartment building. Once he purchased the building, it was in my name. In addition, he opened an office in my name, Inmor Investment Corporation. I also invested my credit and credit cards for money he said were to help build the business. He said he wanted to open an office in Las Vegas, Nevada, so the company purchased a house foe me to live in. In December 2004, I left Los Angeles and moved to Las Vegas. After the move to Vegas, he bought a New Van for me, also two new cars for himself, a small truck and motorcycle, all of these vehicles were in my name. He started using my name to purchase more property. One of his employees, Tim Chapman, came to visit me in Vegas with his family. Tim then told me about other property in me and my wife’s name that I did not know about. This information he got when buying the house in Vegas, which turned out to be inn my name only. After I was given the title as Vice President of Inmor, I then found out the payments on my van had stopped, I lost the van. Also, payments on the house were behind, so my wife used ,000 off her credit card to save the house. Doug promised to repay it. He never paid it back and we lost the house and filed bankruptcy in my name. Shortly after, we moved to a Senior Living Community, my wife is now working to support us; I do not have a job. I have recently learned that Doug Higging has been killed by someone, and now I am left with all of this trouble.

I am suing a lady that was making a cake for me and my wife’s wedding. Long story short, she did not show up with the cake, we sued her, and won, but she has claimed to file chapter 13 only on our "cake" and nothing else, and got away wth it. She also owns a house, and a few cars, not to mention she is about to open a business. Can this be done? Maybe I should file chapter 13 for my credit cards only and nothing else.
I just checked with the judge and told me that since she filed chapter 13 only on the cake, she was free of that debt. She kept a 2000.00 phone bill, all her cars and her houses, only to get away with this debt as free and clear, go figure with the justice system.

I am in the process of liquidating my failing internet business. I have no job or income once this is done. I will have barely enough to file Chapter 7 bankruptcy next month. My problem is that I thought I’d be able to continue my business, and did some balance transfers 120 days ago in hopes of good Holiday sales. Xmas is a bust this year. I know those debts would be automatically reinstated if it were less than 60 days.

I owe ,000 I cannot pay back. I’m terrified that the credit card companies will come after me because I made the mistake of doing these balance transfers. Also, because I’ve been selling off old stock at a loss for the past two years, my yearly income after business expenses has been very low. I was still using my credit cards for business expenses until the end of September. I’m afraid the credit card companies will complain about that as well. I will be filing in Michigan, where personal bankruptcies are at al all-time high.

Does anyone have any experience with these issues of filing Chapter 7 being self-employed?

I will be seeing a lawyer in a few weeks, but it would help me to sleep at night if anyone could share some experiences or advice with me.

I’ve had perfect credit since I was a teenager. Last year we opened a business and it has failed miserably. We have tried selling it with no luck as the lease is too high. We just lowered the price dramatically but my lawyer says only give it a few weeks at the low price then I’ll have to file personal bankruptcy.
It makes me sad but I have no choice. Only I am filing, not my husband. Most of our debts are in both of our names which will transfer to him. But, the store lease, our back store rent, my credit cards and some of my student loan could go into the bankruptcy. I will be bankrupt for 9 months and then discharged. It will be on my file for 6 years after discharge. I’m in Canada.
I’m scared that it will affect our home as when it comes up for renewal my husband may not qualify on his own. Do you have to requalify at every mortgage renewal or are you safe for the 25 year term as long as you pay every month?
We have 5 children and I just need some peace of mind.

Here is the deal, My wife and I both owe k in credit card debts combined. We have stopped making the payments back in December of 08. We just couldn’t afford to make the payments anymore. The reason the amount of the debt is so high is because we bought a house back in 2006 and our realtor at the time was representing both us and the seller and we got the worst part of the deal. Anyways we had to keep borrowing money from the credit cards to pay the mortgage payments on that house. We finally couldn’t afford to make the mortgage payments on that house so we did a short sale in 2008. Now again we have stopped making the credit card payments since December of 2008 and we simply do not have any money. Both my wife and I are self employed and we have a vending business. However we don’t make a lot of money with this business. Anyways the credit card companies have been calling us day and night and the collections have done the same thing and we don’t pick up on any of them. So the other day a process server came to our door and handed us a letter telling us that we had to appear in court. Obviously one of the credit cards filed a lawsuit against us for the amount of money owed and are seeking a judgement against us. That letter was for my wife’s credit card. My turn is coming pretty soon. So we are not gonna go to the court obviously. We don’t have money to pay our credit cards at all. The house we live in now is in both me and my wife’s name but it has gone down in value. We bought it in 2007 for 5k and now it is only worth 0k. All the furniture and stuff we have in the house has already been paid for. We are leasing the car from Honda. So we don’t really have any assets in our name. All we have is the vending business. With that said, since we are not gonna pay a dime to the credit cards since we can’t afford it and assuming that they will get a judgement against first my wife and eventually me, what should we do here. If they do get a judgement against my wife, what can they take away? Should we file for bankruptcy? We can’t afford an attorney. What are we supposed to do to wipe the slate clean and not be bothered by these credit cards anymore. At time point we don’t care about our credit. Please help me out.

I have about 25k in credit card debt. Use to be about 9500 but after 10 years they are all judgments and with all the interest and fees its about 25k now. About a year and a half ago i had a really nice job was making decent money. I saved about 9000$ so i can try to pay my debt off. Originally on average i owed about 2500 to each of the credit cards i had. I got all my info together and called each of them to try to set up a plan so i could pay them off. Right now discover says i owe about 7k originally 3k, and city says i owe 6.5k originally 2.4k, washington is now about 4.5k originally 1.8k those 3 are my highest and all three wouldn’t agree for nothing lower then what they say i owe. all others agreed to a very nice settlement. I offered discover 4.5k , city 4k, and Washington about 2.5k to settle. Washington accepted 3k. but city and discover gave me a no and said that if i didn’t have the full amount they would just garnish my checks till its paid in full. At the time i was off work because my back started to give in. I had the doctor take some x rays and she told me that i had to take physical therapy for my back and should stay away from heavy lifting. Which means i cant do my job no more. So now i am unemployed and well luckily i still had that 9k i saved. Well now i am just fed up with them. I already ran out of money and my brothers and sisters are supporting me and i want to just file for bankruptcy and go to school and get my self a degree in business. Does anyone have any advise you can give me. Thanks in advance.

I also forgot to put this in. My brother was going to help me before when i was working he was willing to put in about 3k on top of my 9k so i could get out of debt. But now hes also low on funds and well i just decided to file for bankruptcy and hes willing to help me pay a lawyer for the process.

Also I am not really worried about the credit score part, i have 6 sisters and 3 brothers and well i learned my lesson and i made sure they learned from my mistakes and they are really thankful for my advise about credit cards lol and bank loans. They all have almost perfect credit scores and i had a big hand in getting them there. My sister offered me a position in a business she is opening and all i have to do is go to school for the position. She was actually the one that tried to negotiate with the credit card company’s on my behalf and she just told me to file since they wont accept a settlement.

I just want to see how many options are available for a situation like this. So i am open for any suggestions, advise, ect… from respectful people who can understand the situation. If you want to criticize, go right ahead too lol I want to here all your opinions.

The funniest part about this is they all want to settle now that i have no money. LOL I just think thats really funny.
hehe ya i already knew about that but i am safe from that too because my sister owns about 3 businesses and she is willing to offer me a marketing position. I am really good at it too i have been helping her with allot so i just want to get a degree in that field and go work for her.

I am a sole proprietor with a small business. I opened a checking accout at Bank of America for my business so that my customers could pay my company with checks/credit cards. If I file personal bankruptcy (Chapter 7), will my business checking account be frozen?

Hi all,

I have an ailing business. purchase price was around 5K. it definitely wont go for that price right now. My overhead is far too large for the income.

I have an S-Corp

Part of the loan is my Home Equity Line of Credit (HELOC) on my house.

The house was put in as collateral.

I have combined K in credit cards.

I am unemployed.

will bankruptcy help my situation?

will bankruptcy take away my house?

can i file for bankruptcy myself or do i need a lawyer (which i dont have money for)?

any tips will be greatly appreciated.

My husband is self employed and that is our only form of income. I got fired from my current work. Can’t seem to pay our credit cards and bills. Getting collection letter now. Can we file bankruptcy and still keep the business and keep our cars?

2 yrs ago my husband and I, we had it good he layed brick for a living. I didnt have to work.Paid our bills. Now since he says he has vertigo all the time he can’t drive. He drives everywhere else just too sick to drive to a job.We saw many doctors- couldnt explain it. So I worked while he thought and thought and thought. Then he opened a automotive business and still doesnt make enough to pay bills. Now I have a judgement against me- he ran up credit cards too. I sought a bankruptcy attorney and he said we could file. I just don’t even have the money for that much less bills, groceries, things kids need, etc……………., I dont understand why he wont do something more. anything to make money. I am going to have to get 2 jobs. The last one i had was killing me. I feel very angry with my husband. I feel he should help me more. I dont think most of the bills should fall in my lap. I am afraid i will become bitter and angry. He used to be a workaholic- Any advice?
he’s not depressed, he don’t even worry about the bills. I’m depressed. He has a nonchalant attitude.
i’m bitter becuase i have to get 2 jobs and pay for the bankruptcy which he helped create. credit debt which led to a judgment being on me not him. 1 job no big deal- i had 1 job when this happened.