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ME AND MY WIFE OWNED A CORPORATION, WE TOOK OUT A BUSINESS

Customer Question
LINE OF CREDIT IN THE...
ME AND MY WIFE OWNED A CORPORATION, WE TOOK OUT A BUSINESS LINE OF CREDIT IN THE COMPANY NAME IN SEPTEMBER-2000. THE FRANCHISE BUSINESS WAS FORCED CLOSED IN APRIL-2004 BY THE FRANCHISER, WE CONTINUED TO PAY THE LINE OF CREDIT BACK UNTIL, OCTOBER,2009, IN WHICH I BECAME UNEMPLOYED, AND MY WIFE IS RETIRED.
WE RECEIVED A CITATION FROM THE BANKS ATTORNEY DEMANDING FULL PAYMENT. WHAT CAN WE DO. WE ARE IN BATON ROUGE LOUISIANA
Submitted: 7 years ago.Category: Business Law
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4/5/2010
Business Lawyer: Ellen, Attorney replied 7 years ago
Ellen
Ellen, Attorney
Category: Business Law
Satisfied Customers: 36,715
Experience: 25 years of experience helping people like you.
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did you personally guaranteeing the line of credit?
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Customer reply replied 7 years ago
I SIGNED AS A GURANTOR FOR THE CORPORATION.
Business Lawyer: Ellen, Attorney replied 7 years ago
Hello,

As you may know, as the personal guarantor of the business loan you remain 100% liable for the business debt. Therefore your choices are to negotiate the best deal you can to pay the debt or to file a bankruptcy.

I will explain.


As an individual, there are two types of bankruptcy available. A Chapter 7 and a Chapter 13. There are distinct differences in between a Chapter 7 and a Chapter 13 bankruptcy.



A Chapter 7 bankruptcy could discharge (erase) all of your unsecured debt such as credit cards, judgments and personal loans. It would be an opportunity for a fresh financial start. However, you may have to surrender assets, if any, that exceed your exemption.



A Chapter 13 bankruptcy is a repayment plan for an individual. It may require that you repay some of your unsecured credit card debt over a 3 -5 year period. However, you may retain assets that exceed your exemption.


Here are the exemptions for Louisiana:
http://www.bankruptcyinformation.com/LA_exemp.htm



Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER
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Customer reply replied 7 years ago
WHAT HAPPENS IF THEY GET A JUDGEMENT FOR THE FULL AMOUNT
Business Lawyer: Ellen, Attorney replied 7 years ago
if the judgment is issued for the full amount, you will need to negotiate a payment plan to pay the full amount or the judgment holder will be able to use the judgment to execute on your assets.
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Customer reply replied 7 years ago
WE HAVE 15 DAY TO RESPOND TO THIS CITATION, WHAT STEPS DO WE NEED TO TAKE TO GET SOME SORT OF PAYMENT PLAN OR TO RESPOND BEFORE THE DUE DATE
Business Lawyer: Ellen, Attorney replied 7 years ago
you may want to telephone opposing counsel and attempt to work out a payment plan. If you are able to work out a payment plan, the attorney should submit an agreed order stating that plan
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Customer reply replied 7 years ago
CAN A CHAPTER 13 BE FILED AFTER A JUDGEMENT IS RECEIVED OR IT MUST BE FILED BEFORE A JUDGEMENT IS RECEIVED?
Business Lawyer: Ellen, Attorney replied 7 years ago
It can be filed before or after a judgment is received
Ellen
Ellen, Attorney
Category: Business Law
Satisfied Customers: 36,715
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