Our plan was filed in 5/07. We've pd. every month on time. Our plan was approved in 9/07. The monthly pmt. of $578 isn't the problem.....My wife was a sole proprietor for 12 yrs. until becoming a NH LLC last yr. & it's sole member. I have been a W-2'd employee for 10 yrs. of her business. The business grosses $750k a yr. & provides an above median income. BUT......85% of our profit is from May to Oct. But wkly. payroll is $7K every week even in winter. Thru the winter we struggle to survive. She takes a draw as needed and I am a W-2'd employee. Our attorney left the LLC out of the plan along with our mortgage and business loan.
We owe the IRS $13,000, State Business taxes of $10,000 and our attorney $1350. So our $140,000 of unsecured non-priority gets the rest. NO ONE showed up for 341 meeting. We've made every pmt. on time & are current on all taxes and insurance.
1st mth. we were sent a Monthly Operating Report. I gave it to attorney and he said he'd work with accountant on it. We even met with him & the accountant who took the reports and said he'd let us know what Quickbooks reports would satisfy the report requirements. We've had to pay the accountant of his $1300 this summer for his consulting. I've called our attorney 20+ times and he rarely calls me back & when he does he says he's working on it. It's been 8 months. Nothing from court either. We had a normal busy summer but the plan was setup averaged out over 12 mths. He said we might have to amend plan to address high income in summer & low income in winter. We didn't spend any frivolous money, go out to dinner once or do anything but work. but still no money saved. All expenses are documented. We did have to pay a plumber $2000 to work on heating/plumbing system but attorney said no problem. So now we are struggling to survive until May. We have $25-$30k of receivables each month but it comes in and goes out instantly. If we convert to a chapter 7 will they liquidate our business? Our business loan states that our bank owns EVERYTHING including A/R, customer lists, vehicles, mops, names,EVERYTHING. But we only owe $27,000 And that includes 3 business vehicles. They hold the title on 2 of the vehicles but 2 are free of liens. But they are old and not worth much. Our bank has never even contacted us although they were notified of the bankruptcy. We are current on all taxes and insurance but this week, we are in trouble until some of that A/R starts coming in. Our wkly payroll is $7k. Is there any way to convert to Ch. 7 & be over this? If any of our bigger customers were to find out about a bankruptcy, they'd drop us as we have never had written contracts with any of them. This is slowly killing us. Thank you if anyone reads this whole thing. I've googled about 1000 times looking for answers until stumbling upon this forum.
We owe the IRS $13,000, State Business taxes of $10,000 and our attorney $1350. So our $140,000 of unsecured non-priority gets the rest. NO ONE showed up for 341 meeting. We've made every pmt. on time & are current on all taxes and insurance.
1st mth. we were sent a Monthly Operating Report. I gave it to attorney and he said he'd work with accountant on it. We even met with him & the accountant who took the reports and said he'd let us know what Quickbooks reports would satisfy the report requirements. We've had to pay the accountant of his $1300 this summer for his consulting. I've called our attorney 20+ times and he rarely calls me back & when he does he says he's working on it. It's been 8 months. Nothing from court either. We had a normal busy summer but the plan was setup averaged out over 12 mths. He said we might have to amend plan to address high income in summer & low income in winter. We didn't spend any frivolous money, go out to dinner once or do anything but work. but still no money saved. All expenses are documented. We did have to pay a plumber $2000 to work on heating/plumbing system but attorney said no problem. So now we are struggling to survive until May. We have $25-$30k of receivables each month but it comes in and goes out instantly. If we convert to a chapter 7 will they liquidate our business? Our business loan states that our bank owns EVERYTHING including A/R, customer lists, vehicles, mops, names,EVERYTHING. But we only owe $27,000 And that includes 3 business vehicles. They hold the title on 2 of the vehicles but 2 are free of liens. But they are old and not worth much. Our bank has never even contacted us although they were notified of the bankruptcy. We are current on all taxes and insurance but this week, we are in trouble until some of that A/R starts coming in. Our wkly payroll is $7k. Is there any way to convert to Ch. 7 & be over this? If any of our bigger customers were to find out about a bankruptcy, they'd drop us as we have never had written contracts with any of them. This is slowly killing us. Thank you if anyone reads this whole thing. I've googled about 1000 times looking for answers until stumbling upon this forum.
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