Posted on: 24th Sep, 2010 09:52 am
If I declare Chapter 13, can my business (which is a CA S-corp) be affected?
Hi nayanika,
Answer to your question is YES as well as NO.
'Yes' in the sense..........If you file for BK creditors who are either offering you credit in terms of money/goods/service may doubt about your financial capabilities.So this may affect your business dealings.
'NO' in the sense.......... If you follow the pay plan given by court without missing a single payment due to you it increase your credibility and thus it will also increase your trustworthiness among your creditors.
Feel free to ask any further query if you have..................
DIPA
Answer to your question is YES as well as NO.
'Yes' in the sense..........If you file for BK creditors who are either offering you credit in terms of money/goods/service may doubt about your financial capabilities.So this may affect your business dealings.
'NO' in the sense.......... If you follow the pay plan given by court without missing a single payment due to you it increase your credibility and thus it will also increase your trustworthiness among your creditors.
Feel free to ask any further query if you have..................
DIPA
My S corp is a profitable business (it is a franchise). My home is being foreclosed on because the current payments are too high. I was in a loan mod program for 10 months and made the payments on time, but they foreclosed anyway. I'm trying to decide between a short-sale and BK 13. If I declare BK 13 and wipe out the 2nd and my minimal credit card debt, can they garnish any of the profits? I have owned my business for 11 years.
hi nayanika!
welcome to forums!
you will be able to strip off your second mortgage if you don't have any equity in your property. as far as i know, you will get a repayment plan in order to pay off your unsecured creditors. the creditors will not garnish the profit that you make from your business.
sussane
welcome to forums!
you will be able to strip off your second mortgage if you don't have any equity in your property. as far as i know, you will get a repayment plan in order to pay off your unsecured creditors. the creditors will not garnish the profit that you make from your business.
sussane