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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2897
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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We own a business and it was me my wife and a friend as partners.

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We own a business and it was me my wife and a friend as partners. In march of 09 the friend partner pulled out. We agreed as follows. To pay him $24000 with in three months to pay off a loan that he had made to the company. Also to pay him $500.00 a month for a period of 60 months for a buy out. In the 3 months we could only pay him $13000.00 due to the econmy and the business strugling. We have payed the $500.00 a month every month faithfuly except we where 2 weeks late 2 different times but have paid them and we are currently current. As to the remainder of the $24000.00 we told him that we wasn't going to have it with in the 90 days and that we would have to make payments or it would cause us to close the doors. He agreed at that time for us to pay $775.00 a month until it was payed off. We where also late 2 times on that for 2 weeks but today are current. He informed me today that he is filing chapture 7. Where do we come into play with his bankruptcy.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 7 years ago.
the money owed to him is an asset. This may need to be paid to the trustee to pay his creditors. The trustee may contact you to make payment arrangements for the difference, to catch up on the arrears, and to pay the trustee the installments for the future payments due.
Customer: replied 7 years ago.
What part is considered in the rears i don't understand.
Expert:  Terry L. replied 7 years ago.
Ok, I mis-read. if you have a written agreement to modify the balance of $24,000 to be paid at $775mo and are current, then there is no arrears. Thanks for the clarification. Good luck.
Customer: replied 7 years ago.
Ok i am sorry for the misunderstanding. There wasn't a written agreement to change the agreement it was verbal and it took place back in june of 09 and we having been paying every since. We currently owe 7200.00 on the balance and he said that the trustee was going to require us to pay all in full. My question is, is this true or will he contact me and have us continue to make the payments but to the trustee. If we have to pay in ful it will put us under.
Expert:  Terry L. replied 7 years ago.
Since it was an oral modification, that won' likely hold water, and you may need to work out a payment plan with the trustee if you don't have the funds. When they contact you, see what they will be willing to do for you. You can also hire an attorney to represent/negotiate for you. they are usually pretty reasonable. Good luck.

Edited by Terry L. on 2/4/2010 at 6:47 PM EST
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