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Phillips Esq.
Phillips Esq., Attorney-at-Law
Category: Bankruptcy Law
Satisfied Customers: 19658
Experience:  B.A.; M.B.A.; J.D.
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Hi. Unfortunalelly recently my construction business slowed

Resolved Question:

Hi. Unfortunalelly recently my construction business slowed so much that I am not able to pay off my credit cards. I chose some credit cards that I am using where credit is available and paying off minimum payment due. On some credit cards I am currently 50 days late with payment. My question is if I can continue using few cards and do not pay others since I am making three time less money than two years ago; or should I think about bancrupcy and when? Artur
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Phillips Esq. replied 8 years ago.
I need so more information in order to assist you:

(1) Is your business incorporated?

(2) How many people are in your household?

(3) What is your family's annual income?

(4) Do you have a house? If yes, how much is it worth and how much are you currently owing on it?

(5) Do you have a car? If so how much do you owe on it and how much is it worth?
Customer: replied 8 years ago.

Thanks for annswering and here is my answers:

1. I am not really sure about first question ( I will find out)

2. with me there is five people in the houhold

3. Last year was very poor - groth income about $15,000 (just me working)

4. I rent a house for 2,000 a months ( I use some convenice check for paying rent now , therefore my debts on credit cards higher - about $200,000 thousend)

5. I have two cars, but they are both almost 10 years old (each about $2,000)

Thank you

Expert:  Phillips Esq. replied 8 years ago.


Thanks for getting back to me.

You can use the credit cards to purchase necessary items such as food, gas, etc. Just make sure that you do not use the credit cards within 70 days of filing for bankruptcy protection to obtain cash advance over $750.00 or use the cards to purchase more
than $500.00 worth of goods or services within ninety (90) days of filing for bankruptcy protection. Because if you made charges within those two time periods the credit card company might object to dischargeability of those charges.

The best time to ask for bankruptcy protection is now assuming that you have not made any purchases within the time periods mentioned above that may be objected to by your creditors.

Chapter 7 will be your best option if you meet the income guidelines for your state. If your income is equal to or less than the income for your household size for your state you will be eligible to file a chapter 7. With your current income of $15,000.00 you will be eligible for a Chapter 7.

These are the current income guidelines for the state of Connecticut:

Household of one person $57,505.00
Household of two persons $70,827.00
Household of three persons $85,315.00
Household of four persons $103,408.00
Add $6,900.00 for additional individual

If your business is not incorporated, then you need to put the debts of the business in your personal bankruptcy. If your business is incorporated but you personally guaranteed the loans for the business, you also need to put the guaranteed loans on your personal bankruptcy.

All the best,
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