Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification
Do you have any equity in the home?
Do you have any assets in the business in your name?
If you file a bankruptcy the 20,000 could be discharged, however your credit would be hurt for a few years,
and any non exempt assets you own could be taken to pay off the debt
If your home has limited equity, and your business has limited assets, than a bankruptcy would be fine and you would not be hurt too much
here are some of the exemptions you can claim if you choose to file:• Homestead Exemptions: Most people can exempt up to $75,000 on their homestead, but this climbs to $150,000 for anyone 65 or older, disabled, or 55 or older if their gross income is less than $15 - $20,000.• Wages: Under the wages exemption, a bankruptcy lawyer in California may help you to keep up to 75% of your wages.• Autos: The automobile exemption helps you save up to $2,300 of equity in autos.• Personal Property:will help you to save up to $6,075 for these items. This exemption can also be applied to tools you use for your business or profession.
I don't have any equity on the house. Can you give me an example of what kind of assets in the business? I own a gym. What does homestead mean?
Do you own the gym or have a lease?
In regards XXXXX XXXXX wages, what do u mean by helping me keep up to 75% of my wages? How does that work?
I lease the place
It is a Curves franchise
In terms of wages, how much is your current income?
Is the lease worth anything if sold?
I am losing $ on my business since the recession. As of today, I only make anywhere from $1000-$2000 a month (this is after I have paid all my bills).
Is the lease worth anything, and is it in a corporation or your personal name?
I may not be even able to sell it. My franchise is losing $. I have seen other Curves owners try to sell theirs for $1 just to get it out of their hands. Most of them close it down.
It is a personal name
than you are fine,
these assets are not worth anything,
in terms of the wages, that is if you have certain income saved in a bank account,
75% would be protected if it is over a certain amount, in your case, where you have limited income,
it is not an issue
I have about $8,000 saved in a savings...will that be a problem?
It could be, as $6075 is protected,
oh, i see
however, you can use the money to purchase exempt property such as an IRA, to protect some of it,
How much does it cost to file?
their is a personal property exemption of $6075
does personal property include the car?
Their is a $2300 exemption in a car,
If you own the car and it has more than $2300, it could be sold
what if my car is worth $5000? What would happen with the 2300 exemption?
will I be forced to sell it?
Yes, it could be sold, or you would have to give the court the $2700 extra
So in short, I won't lose my business or house?
how much does it cost to file?
You should seek counsel from a local CA bankruptcy attorney, but from the facts you have stated, with your limited assets, and income, you should be fine
$350 for the Court, and certificates required, and $500-$1500 for an attorney if you use one
is it possible to file on my own without paying anyone?
Yes, it is possible, but difficult, I would look into a paralegal service which their are many online who just prepare the petitions for you they are cheap
Also, a website like craigslist has bankruptcy petition petition paralegals as well
will they be able to counsel me?
the paralegal, i mean?
only to prepare the peitition
would it still be cheaper if I pay for counsel, and then go to a paralegal for the paperwork?
In your case I would shop around a chapter 7 may be $900, while a paralegal is $200
$900 to whom? the lawyer for counsel?
yes the attorney fee
If you have any further questions please do not hesitate to ask
If satisfied with our service please press the accept button so we can receive credit
do you recommend anyone in the Ontario, California area?
we are not allowed to,
you can use craigslist, or online to find a local attorney or even contact the local bar association,
oh, i see. So can I ask u questions if I have any regarding the same things in the future?
yes, you can ask for wallstreet esq, and I will be happy to assist you
oh, one last thing...can the bank sue me after i file for bankruptcy?
no, once you file bankruptcy all civil actions must stop, and all debts can be discharged, unless they are taxes, or child support
ok...thank you so much!!! I will click the accept button now. Happy New Year!
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