my wife and i have two small businesses. Both have been financed through us personally. One has failed resulting in losses of over 125,000.00. the other is just hanging on. We had signed a loan with the BDC using our house as collateral. The problem is rather than declaring backruptcy, we are trying to pay off the bills slowly, but it is affecting our personal bills/life. Personally we owe in excess of 450,000 dollars due to the business loans, etc. Due to our ages, both 59, we feel that we will never be able to pay off all of the debts. how would go about declaring bankruptcy and do we have any options. can we keep some of the debts or must they all be included.
personal/corporate bankruptcy
Posted on Saturday, June 7, 2008
posted by Questions @ 9:04 am
1 Expert Comment:
At June 10, 2008 |
6:19 am
, Barton Goth GCO Bankruptcy Trustees Said...
To declare bankruptcy the first thing you must do is to meet with a trustee. Most trustee’s will offer a free consultation as it is a good oppertunity for the trustee to explain how a bankruptcy works and ensure that you are aware of how the bankruptcy process will unfold in your situation. As for options, there are definately options, you can always consider filing a Proposal. A proposal is a good way to avoid a bankruptcy, but whether or not you can afford to file a proposal is the big question and to answer that we would really have to look at your typical montly cash flow (although based on the level of your income there is a good chance you would be able to afford this).
As for which debts you can included, in either a bankruptcy or a proposal you are required to list all of your debts (you cannot pick an choose).
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