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Being in business after Ch 7

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Nomorecc

Junior Member
What is the name of your state? WY

My husband and I are self-employed. Some time ago the business slowed down and we started to experience difficulties keeping up with CC payments. Eventually, CC companies pushed it to where we could not make the payments. If you receive a $200 bill where only $5 is going towards your debt - it is ridiculous. I tried to negotiate, but they refused to change anything.

Anyway, yesterday we received summons from one of the companies.

Our financial situation could be better. We barely make the ends meet, so credit counselling or Ch.13 are not in the list of options. We simply don't have the extra money to make payments.

We don't have assets. No property, diamonds, gun collections or mink coats. One car that we already paid off.

I have several question, and if somebody could give me an input, it would be great:

1. How do we respond to the summons? What can happen if we don't? Since we are self-employed and have no wages to garnish, I assume they will dig straight into our checking account. Am I correct?

2. Based on the current situation, we are not likely to be able to afford the installments. Besides, this is not the only CC we owe to. Others are likely to follow this path. Looks like Ch. 7 is the only way. Is it?

3. Our main concern after filing Ch. 7 is the ability to be in your own business. We are working on a project right now (and this is to ensure our financial future and be able to pay any and all bills - I mean we are not just resting and doing nothing - we try to improve the situation). How difficult it can be to obtain an investment for a business if one of the key managers (president in this case) has a bankruptcy record?

4. My husband is the primary cardholder, and even though my name appears on some of the accounts, none of these cards have my SSN. Will I have a bankruptcy record as well?


Thank you.

Oh, yes. We have two TV's, one bought in 1997, the other is a big-screen TV bough in 1999 ($1200 at that time) and a stereo system bough in 1999 for approximately $1000. Should we file Ch. 7, are they going to take away the big-screen TV and the system?
 


You didn't say whether your business is incorporated or not...or if it is, does the CC carry a personal gurantee.

You probably want to talk with a lawyer or two in the area (find one you can work with). Most will give you a free consultation to help you decide what's best.

And, yes, it is possible to close down one business under BK and open another the next week. Depending on how your business is organized, this might be simple...or not. Its possible that whatever receivables you have outstanding will be taken in BK.
 

Nomorecc

Junior Member
Oh, yeah, I should elaborate.

The debts we are talking about are personal. Current business that has been slow is a sole proprietorship.

The business that is being started is a corporation where other people are present, and this business is the one we concerned about.
 

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