How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask WALLSTREETESQ Your Own Question

WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15830
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
16356563
Type Your Bankruptcy Law Question Here...
WALLSTREETESQ is online now
A new question is answered every 9 seconds

Hi. I have a lot of financial issues and want to ask about

Resolved Question:

Hi. I have a lot of financial issues and want to ask about bankruptcy. I owe a bank $20,000 on a business credit line. If I file for bankruptcy, what will be the consequences? I own a business as a sole prop. I also own a home.
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 2 years ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

Do you have any equity in the home?

WALLSTREETESQ :

Do you have any assets in the business in your name?

WALLSTREETESQ :

If you file a bankruptcy the 20,000 could be discharged, however your credit would be hurt for a few years,

WALLSTREETESQ :

and any non exempt assets you own could be taken to pay off the debt

WALLSTREETESQ :

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

WALLSTREETESQ :

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.

Customer:

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?

WALLSTREETESQ :

Do you own the gym or have a lease?

Customer:

In regards XXXXX XXXXX wages, what do u mean by helping me keep up to 75% of my wages? How does that work?

Customer:

I lease the place

Customer:

It is a Curves franchise

WALLSTREETESQ :

In terms of wages, how much is your current income?

WALLSTREETESQ :

Is the lease worth anything if sold?

Customer:

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).

WALLSTREETESQ :

Is the lease worth anything, and is it in a corporation or your personal name?

Customer:

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.

Customer:

It is a personal name

WALLSTREETESQ :

than you are fine,

WALLSTREETESQ :

these assets are not worth anything,

WALLSTREETESQ :

in terms of the wages, that is if you have certain income saved in a bank account,

WALLSTREETESQ :

75% would be protected if it is over a certain amount, in your case, where you have limited income,

WALLSTREETESQ :

it is not an issue

Customer:

I have about $8,000 saved in a savings...will that be a problem?

WALLSTREETESQ :

It could be, as $6075 is protected,

Customer:

huh?

Customer:

oh, i see

WALLSTREETESQ :

however, you can use the money to purchase exempt property such as an IRA, to protect some of it,

Customer:

How much does it cost to file?

Customer:

ok

WALLSTREETESQ :

their is a personal property exemption of $6075

Customer:

does personal property include the car?

WALLSTREETESQ :

Their is a $2300 exemption in a car,

WALLSTREETESQ :

If you own the car and it has more than $2300, it could be sold

Customer:

what if my car is worth $5000? What would happen with the 2300 exemption?

Customer:

oh, i see

Customer:

will I be forced to sell it?

WALLSTREETESQ :

Yes, it could be sold, or you would have to give the court the $2700 extra

Customer:

So in short, I won't lose my business or house?

WALLSTREETESQ :

no,

Customer:

how much does it cost to file?

WALLSTREETESQ :

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

WALLSTREETESQ :

$350 for the Court, and certificates required, and $500-$1500 for an attorney if you use one

Customer:

is it possible to file on my own without paying anyone?

WALLSTREETESQ :

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

WALLSTREETESQ :

Also, a website like craigslist has bankruptcy petition petition paralegals as well

Customer:

will they be able to counsel me?

Customer:

the paralegal, i mean?

WALLSTREETESQ :

no counsel,

WALLSTREETESQ :

only to prepare the peitition

Customer:

would it still be cheaper if I pay for counsel, and then go to a paralegal for the paperwork?

WALLSTREETESQ :

In your case I would shop around a chapter 7 may be $900, while a paralegal is $200

Customer:

$900 to whom? the lawyer for counsel?

WALLSTREETESQ :

yes the attorney fee

WALLSTREETESQ :

If you have any further questions please do not hesitate to ask

WALLSTREETESQ :

If satisfied with our service please press the accept button so we can receive credit

Customer:

do you recommend anyone in the Ontario, California area?

WALLSTREETESQ :

we are not allowed to,

WALLSTREETESQ :

you can use craigslist, or online to find a local attorney or even contact the local bar association,

Customer:

oh, i see. So can I ask u questions if I have any regarding the same things in the future?

WALLSTREETESQ :

yes, you can ask for wallstreet esq, and I will be happy to assist you

Customer:

oh, one last thing...can the bank sue me after i file for bankruptcy?

WALLSTREETESQ :

no, once you file bankruptcy all civil actions must stop, and all debts can be discharged, unless they are taxes, or child support

Customer:

ok...thank you so much!!! I will click the accept button now. Happy New Year!

WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15830
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
WALLSTREETESQ and 2 other Bankruptcy Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.