Unfortunately, after 12 years in business as a sole proprietor, I am unable to meet my monthly credit obligations. I've lost three large clients in the last year and a half - one went under, another brought the work inhouse, and the third went with a competitor that was cheaper. I have been using our personal funds to pay my business debt and that just can't continue. My questions are: is chapter 7 my only/best option? and will this affect my husband's credit at all? We have a home that is held jointly but the credit cards are in my business name. I am in RI. TIA
hmmm BK is an option, but you NEED a lawyer once a house is involved. Issues like a community property state, deed in both names, etc all gets very complex, can impact the mortgage, etc. Not something to fiddle around with, get a PRO. Also remember, BEFORE you can file you must pass a credit counseling course, they are free and there are authorized sites providing these around the nation. Go to the Bankruptcy court website and find the local counseling in your area. You MUST get the certificate BEFORE you file, or your filing will be denied and you will be suspended from being able to file for 6 months. DO NOT screw that up.
Thanks for the heads up. I just read all the changes in the law that took effect in 05 and learned of the counseling requirments and the mean income (which I meet so I can do 7). I've been reading alot about settlements. Can I offer to pay a percent of what is owed in lieu of bankruptcy? If so, what are the odds it would be accepted? With a bk they'd get nothing, at least they would recoup something if I made an offer...
