Finance

Have Finance Questions? Ask a Financial Expert Online.

Ask an Expert,
Get an Answer ASAP!

Finance
This answer was rated:

Hello, Let me start with letting you know I think this is

Hello, Let me start...
Hello, Let me start with letting you know I think this is a long question... As short as possible story... I own a business in PA for 9 years. It's an LLC. Also a house. I have both up for sale 175K for house and 140K for business. I have been divorced for 2 years and I just can't afford all of these expenses with my one salary. I have used all of my credit on my credit cards, and can't get anymore credit. I can't refinance because I don't make enough money for the amount of my house. If I could just sell my business and house I can pay off my debt and work for someone else. I don't know if I should look into filing bankruptcy or keep putting off my creditors? Right now I am current with paying only minimum payments. I really really don't want to file bankruptcy. Any suggestions?
Show More
Show Less
Ask Your Own Finance Question
Answered in 26 minutes by:
9/16/2013
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4,545
Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
Verified

Rakhi Vasavada :

Dear Friend,

Hello and welcome. Thank you providing an opportunity to assist you.
Kindly remain online as I prepare your reply.

Rakhi Vasavada :

I think there are some points you need to consider and few things you need to do before you opt for bankruptcy. Filing for bankruptcy is best avoided but at the same time, one should not be averse to filing it for "strategic" purpose. Let me elaborate.

Rakhi Vasavada :

To begin with, if you are fine with selling your business and more importantly your house, it is certainly the good thing to do as it will make you debt free. You will have option to start afresh but at the same time, exercising this option will come at a cost. The cost here is letting your home go.

In such a case, you have another option as well. Sell off your business and that will pay of more than half of your debt. Now regarding home payments, the normally it is best advised to re-negotiate with your lender for softer payment terms.

Rakhi Vasavada :

If this does not work out, you may have another option as well. If you manage to sell your business and if you are not able to currently renegotiate the softer terms with your home lender, explore the possibility if you can continue to make payments and remain current. If you have better work for next few months to come, you can attempt to re-negotiate with your lender, your chances are high with the improved income.

Rakhi Vasavada :

If none of this work out then you are left with two options. First sell off both your business and home and start working for someone else, as you have mentioned in your question.

Second option is that if you are not willing to give up your home or do not wish to give up your home -- only here, bankruptcy comes in to play. by filing bankruptcy, you, like most debtors will be able to keep your home and keep off creditors.

http://www.nolo.com/legal-encyclopedia/home-chapter-7-bankruptcy-32498.html

Rakhi Vasavada :

However, before you apply, you need to know that in your State PA, ---- To qualify for Chapter 7 or Chapter 13 bankruptcy, you must show that you received credit counseling from an agency approved by the Bankruptcy Administrator during the six months prior to filing for bankruptcy.

http://www.nolo.com/legal-encyclopedia/filing-bankruptcy-pennsylvania.html

Rakhi Vasavada :

I am sure this would help. You may leave a positive rating if this helps or feel absolutely free to revert back with a reply for further assistance. I would be more than happy to keep assisting you.

Warm Regards,

Ask Your Own Finance Question
Customer reply replied 4 years ago


Thank You very much! I am fine with selling both my house and my business, I am actually quite happy to do so. It's been too much stress and I am welcoming the downsizing! However, I don't want to ruin my credit. And I don't want to owe people. I wonder if there is a way to borrow against the sale of either my home or the business or both?

Dear XXXXXa,

Hello and welcome again. Thank you for reverting back with a reply.

If that is your case and if you really welcome downsizing, then you much go ahead and sell both. I completely agree with you that bankruptcy will completely ruin your credit and leave your credit crippled for at least 7 years to come.

I am sorry but I do not see any legitimate and credible source to borrow against pending home sale. I have never seen such thing happening unless done on a very private basis. Otherwise, I do not see any commercial lender lending it without security or if you offer house at security, it would be subject to normal terms which you will not qualify OR you may lend up with very very high interest rates.

I am sure this would help. You may leave a positive rating if this helps or feel absolutely free to revert back with a reply for further assistance. I would be more than happy to keep assisting you.

Warm Regards
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4,545
Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
Verified
Rakhi Vasavada and 87 other Finance Specialists are ready to help you
Ask your own question now
Ask Rakhi Vasavada Your Own Question
Rakhi Vasavada
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4,545
4,545 Satisfied Customers
Experience: Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Rakhi Vasavada is online now

A new question is answered every 9 seconds

How JustAnswer works:

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

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:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

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

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

4,545 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,218 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,919 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
I inherited my father's IRAs. I have accounts with Fidelity
I inherited my father's IRAs. I have accounts with Fidelity and Schwab. One of my Schwab accounts is titled Inherited; the other is listed as a Roth. The Fidelity account is listed as an IRA. My quest… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Are you familiar with Chapter 7 and tax consequences? I have
Are you familiar with Chapter 7 and tax consequences? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I got a chapter 7 discharge in 2016. 1. Do I need to report
I got a chapter 7 discharge in 2016. 1. Do I need to report my discharge on my tax return in 2016 and if I do, how do I do that since the Judge in a chapter 7 never determines exactly how much money w… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I find myself in serious dept mostly credit cards. ( Over
I find myself in serious dept mostly credit cards. ( Over $140,000 ) I'm curious if any of these companies that say they can settle with the credit card companies at a lowered amounts and set you up w… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
2,218 satisfied customers
Owned a house in 2010 with a $800,000 mortgage on it.
Owned a house in 2010 with a $800,000 mortgage on it. Couldn't afford the payments and had to move out of state for work. The mortgage servicer, Nationstar, has not moved at all to foreclose - the bal… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I need to fill bankruptcy on my credits cards and medical
I need to fill bankruptcy on my credits cards and medical bills What chapters would you recommend, and where would I start? , Thank you… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
481 satisfied customers
I have a substantial amount of US Savings Bonds. I know I
I have a substantial amount of US Savings Bonds. I know I have to pay taxes on the interest except for educational purposes. Do I get this benefit if I pay off my grandson's college tuition debt?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I was in contact with Lucy last night re a query regarding
I was in contact with Lucy last night re a query regarding someone wanting to purchase an old stock that I had that I had deemed to be ''useless''. I have some paper work that was to be signed by me t… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
How can a Homeowners Association collect a debt dues when
How can a Homeowners Association collect a debt for delinquent dues when the owner has been declared bankrupt & the bank has acquired the property & persauded the court to extinguish their debts?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am trying to modify my home mortgage loan, I was denied
I am trying to modify my home mortgage loan, I was denied for not having enough income, the bank said I can add a income contributor, my question, is there any rule of thumb formula ( criteria) that m… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Here is where we left off. "Scenario: husband owes irs taxes
Here is where we left off. "Scenario: husband owes irs taxes though plans to do an offer in compromise. wife owes no taxes. Can you set up a trust for a house co-owned by both, if there is a final not… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
No assets except a 1979 Caddilac that I paid cash. I
No assets except a 1979 Caddilac that I paid for in cash. I owe $15,00.00 to credit cards. My only income is about $20,000.00 from SS. I pay spousal support of $4800.00 annually. Can my car be repo'd?… read more
Dimitry K., Esq.
Dimitry K., Esq.
Attorney
Doctoral Degree
332 satisfied customers
Please review the attached Case: it comes from chapter 7 of
Please review the attached Case: it comes from chapter 7 of this book ISBN10NNN-NN-NNNN . This is a link to what I have on the case so far. https://www.dropbox.com/s/ik1lv3h456dx99k/AOL%20draft.doc I … read more
F. Naz
F. Naz
CA Finalist & Completed B.com
275 satisfied customers
I have 7 accounting questions with a 3 hour time limit... I
I have 7 accounting questions with a 3 hour time limit... I would need them completed by Wednesday at Midnight and I will pay 100USD for them completed. Please let me know as soon as possible.… read more
F. Naz
F. Naz
CA Finalist & Completed B.com
275 satisfied customers
I am 100% Disabled USMC. Aloso SSDI and State of ND ...
I am 100% Disabled USMC. Aloso SSDI and State of ND disability payments. Recently a law firm and our bank seized all our moneys over a pending judgement. I informed the law office that since my wife w… read more
martyburbanklaw
martyburbanklaw
Post-Doctoral Degree
5 satisfied customers
Does Chapter 7 or 11 apply to single persons whom are ...
Does Chapter 7 or 11 apply to single persons whom are in a financial mess like the corporations?… read more
Guru_Guy
Guru_Guy
Doctoral Degree
1,634 satisfied customers
my home is in forclosure and i am currently unemployed and ...
my home is in forclosure and i am currently unemployed and we have over $100.000 in credit card debt my husband just got a Pastorship in Agusta georgia and they have given him a monthly salary of $23o… read more
Dirk
Dirk
Bachelor's Degree
10 satisfied customers
I have just recieved a large sum of money from a workcomp ...
I have just recieved a large sum of money from a workcomp settlement. I have paid off the remaining balance of a bankruptcy. I have also judt sold my house. I want to move to Florida to be near mu bro… read more
Dave Z
Dave Z
Self-Employed
Bachelor
418 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x