I have an unusual situation.
I own a Sears Hometown Store. The store is paid for but not profitable up to this point. I am one month late with my lease payment to the Landlord
I am now in the process of attempting to sell 2 homes. One should sell for enough to pay the bank. The other will sell short.
I do not live in either house because I moved 150 miles away with the new business a year ago.
Right now I am living in a motel until everything clears up before I move forward.
I have some medical bills 1 year overdue about $2,500. Not a huge amount.
The only other debt I have is to the IRS
for about $17,500 in taxes
There was some dishonesty as to why the store so far has failed but my projection shows a profit of about $50,000 per year now that the learning curve is over.
I have a contract
with Sears and a lease with my Landlord for the business through June of 2014.
I was told from Sears that if I can not afford my lease and the landlord closes me down that I can get sued for lost sales from Sears.
The questions are :
1. If the houses do not sell and the banks start the foreclosure process can I or would I be able to file for personal bankruptcy
rather than go through foreclosure?
2. If I did file for personal bankruptcy , would it be beneficial to me (in some way) rather than foreclose even though my credit would take a hard hit? (I know my credit will take a lesser hit with a house that sells short or goes through foreclosure)
3. If I go through a personal bankruptcy , is my store in Jeopardy? I know some people file for personal bankruptcy but are then able to keep their business afloat.