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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I have old business loans from a business that has been closed for 2 years. There are no a

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I have old business loans from a business that has been closed for 2 years. There are no assets and I still have about $100K in loans still owed. The burden to do the right thing has become too much and I can no longer keep up with the payments. They are credit cards and business lines of credit. I make a good income but cannot keep up anymore. The loans are unsecured and I believe I am liable for it all personally. Do I have any options? I have been paying and keeping up to date but now I am falling behind. I just went through a short sale for a home that was on the market for almost 2 years. Tired of trying. Thank you.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi JACustomer,

Your question is in the Bankruptcy section.

1) Are you asking if you have the option to file a Bankruptcy?

2) If so, how many are in your household?
3) What is the total gross annual income for your household?

4) How much equity does your car have? (Equity is the current market value minus the balance - if any - of the car loan.)

5) Are you currently renting your home?

 

Customer: replied 6 years ago.

1. If I file bankruptcy can I do it from a business perspective or is it personal bankruptcy?

2. 3 counting a college student.

3. Income approx. 150K per year

4. Both cars paid for no loans. value = about 20K

5. Renting

Expert:  cfortunato replied 6 years ago.

You would have to file a personal Bankruptcy, as there is no reason to file for a business that has already closed, and has assets.

There are 2 major types of Bankruptcy - Chapter 7 and Chapter 13. With a Chapter 7, the debtor pays nothing to have his debts discharged. With a Chapter 13, the debtor must pay all disposable income (net take-home pay minus allowable expenses) to the Bankruptcy court for 5 years. At the end of the 5 years, the unsecured debts can be discharged.

Given the information you provided, your income is too high for a Chapter 7 (maximum of $55,764 for a family of 3 in Georgia), but you would be able to file a Chapter 13.

I think this is what you wanted to know. If not, please let me know.

Thank you!

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