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Company Loan Type APR Est. Pmt.

Bankrupsy

Posted on: 13th Jul, 2008 09:05 am
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?
Have you asked why you lawyer suggested chapter 13 instead of chapter 7? Let him know what you are thinking.
Posted on: 13th Jul, 2008 04:27 pm
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.
Posted on: 14th Jul, 2008 01:00 am
Are the payments high under chapter 13?
Do they go by what you can afford and your income?
Posted on: 14th Jul, 2008 05:51 am
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.
Posted on: 14th Jul, 2008 07:18 am
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?
Posted on: 14th Jul, 2008 07:43 am
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.
Posted on: 15th Jul, 2008 03:08 am
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
Posted on: 12th Aug, 2008 07:17 pm
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
Posted on: 13th Aug, 2008 05:31 am
Hi,

I can understand your state of mind but don't worry every thing will be all right soon. If you think that you can afford paying a low monthly payment then I would suggest you not to file bankruptcy. Talk to your lenders and try to negotiate on the monthly payments. If the creditors do not want to negotiate then consult with a good attorney and send a hardship letter so that the creditors may consider your situation.
If you have any queries feel free to ask.
Posted on: 07th May, 2010 09:42 am
My creditor won't even negotiate a lower interest. I've always paid on time and have a great credit score. However the economy has taken a toll on me this year and I've drained my savings paying bills and am to the point I can't pay my June bills now. I'm scared!!
Posted on: 27th May, 2010 12:37 pm
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