Bankrupsy

jaden3292002 · Joined: 30 Jun 2008 Posts: 12 7.48 Dollars($)

So our lawyer suggested chapter 13 bankrupsy for the failing of our business and possible foreclosure.
I was looking up chapter 7 though and it almost seems better because they will liquidate your assets and sell them and I believe that thats it and your clear after that, chapter 13 seems like just a restructuring.
I only have the building of the store that is under foreclosure as an assett, I own nothing else so wouldn't chapter 7 be a better choice?

laphillips · Posted: Sun Jul 13, 2008 4:27 pm Post subject: Bankrupsy

Have you asked why you lawyer suggested chapter 13 instead of chapter 7? Let him know what you are thinking.

helping_user · Posted: Mon Jul 14, 2008 1:00 am Post subject: RE: chapter 13 may be better

Hi jaden,

I'll go by what Lynette says here. I mean you should ask your attorney as to why he suggests Chapter 13. However, I feel it's a better option than filing Chapter 7.

I'm not sure as to which assets are liquidated in chapter 7 and I don't know whether the building store as an asset to be liquidated will give you enough to pay off your debts. But as far as your credit score is concerned, it'll get better if you restructure your debts by Chapter 13 payment plan. But hey jaden, can you afford the payments under the ch13 plan?

Thanks.

jaden3292002 · Joined: 30 Jun 2008 Posts: 12 7.48 Dollars($)

Are the payments high under chapter 13?
Do they go by what you can afford and your income?

jasonpolito · Posted: Mon Jul 14, 2008 7:18 am Post subject:

Is your financial situation really that bad that you are thinking about bankruptcy? I think this is your last option, if you can look into a better alternative.

jaden3292002 · Joined: 30 Jun 2008 Posts: 12 7.48 Dollars($)

I didn't want to do bankrupsy but thats what my lawyer suggested.
Im not sure how my debt load is gonna end up. I definately don't like the idea!
Someone suggested a debt to the assigment of creditors, ever hear of this?

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.15 Dollars($)

Welcome jaden.

The chapter 13 repayment plan should be affordable. Bankruptcy chapter13 is a benefit given to the defaulted borrowers so that they can catch up with their mortgage payments or other debt payments. If you want to know more about chapter 13, take a look at http://www.mortgagefit.com/bankruptcy/chapter13.html

Hope it helps. Let me know if you have any further queries.

Guest 0.10 Dollars($)

do to gas prices i have a business but i dont want to lose it that is all i have ever done need help untill things str--------------out have got behind creadit is bad but buisness is picking up just need time help

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Guest. Welcome to the forum.

You got behind on your payments. So talk to the bank and inform about the hardship that you are facing now. You can send then a hardship letter mentioning the problems that you are facing at present and what are you try to improve the situation. Hope it helps.

Best of luck,
Larry

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