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    #1

    Question before filing

    Hi,
    I am pretty new to this and was wondering if I could get some advice. I am most likely going to file Chapter 13 bankruptcy alone. A little history ~ back in 2004, I allowed someone who I thought was very reliable and a friend to use my name on her business lease. It was only supposed to be for a couple of months but once I started to realize it was a scam, I contacted the lease company but they said there was nothing they could do for me. So, the lady who conned me filed for bankruptcy in late '04 and moved her business to a different location. This left an empty business space under my name only. I didn't have money to hire a lawyer to fight it but it is rearing it's head now that the lease has expired. They are suing me for about $150,000 so I am pretty much forced into bankruptcy. I only have a little credit card debt (less than 10k). Here is my question....me and my husband (married after all of this originated) are having to undergo fertility treatments ($25k) in about 6 months. We do not have savings for this but were going to charge it and pay it off. Would it make more sense for me to do the treatments first and then file bankruptcy so it is included? I don't want to get over on the system but at the same time I feel as though the system has failed me. And I'm worried that once I file, all of our family's disposable income will be put into the bankruptcy and we'd never be able to pay off the fertility treatments? I have a meeting with a lawyer next week but was hoping to get some insight first. Thanks so much!
    Tags: None
    #2
    If your friend used your name on a business lease, that is fraud on her part and you are not responsible for the debt.

    Did you personally sign any of the papers?
    Golden Jubilee was a year-long celebration held every 50 years in which all bondmen were freed, mortgaged lands were restored to the original owners, and land was left fallow: Lev. 25:8-17

    Comment

      #3
      Creditors will go after whoever they can, just because they are trying to collect a debt, doesn't mean they have the right person. This debt should really have been discharged in the other woman's bankruptcy. Did she file Chapter 7 or 13?
      Golden Jubilee was a year-long celebration held every 50 years in which all bondmen were freed, mortgaged lands were restored to the original owners, and land was left fallow: Lev. 25:8-17

      Comment

        #4
        I did sign the papers with the understanding that my name would only be on the lease for 2 months; it was stupidity on my part. I was not a partner nor had anything to do with the business. However, b/c I was on the lease I am held accountable for it. The lease originally had her name and another man on it too but they both filed bankruptcy (I believe 13) immediately. It makes me so angry b/c she opened her business under another name down the street...I just don't understand how people get away with stuff like this. But anyhow, I am the only one left that the leasing company can come after. We had an asset hearing and I am pretty much playing the waiting game right now. I had a lawyer represent me and it is costing me a lot of money that I don't really have. I hate that this is a result of my stupidity and now my husband will have to suffer as well. I am not currently working so my husband's income will be used to calculate our payments, I'm assuming. But my question remains, should I wait and include the fertility treatments in the Ch 13? From my understanding, you pay it all off anyways, so it would probably make more sense to file after that, right?

        Comment

          #5
          My bankruptcy attorney told me that if anything like a cash advance or a large purchase is done prior to filing, you must wait a minimum of 70 days to file or it will be deemed to be fraudulent activity and the creditor/medical facility can come after you. Anything you incur after you file, is your responsibility.

          Comment

            #6
            Originally posted by camp View Post
            I did sign the papers with the understanding that my name would only be on the lease for 2 months; it was stupidity on my part.
            First rule of business... never sign for friends, relatives, enemies, lovers... Don't even sign for the President himself.

            There is no such things as "only... for 2 months". You are legally responsible, when you sign something, for the duration (term) indicated int he documents.

            If you signed a 12 month lease thinking your "friend" was going to get a new lease after 2 months... you have no recourse as you did, in fact, sign a 12 month lease.

            As for fertility treatments, you may want to do it now. That type of debt won't be dischareable anyhow, as it's considered, unfortunately, elected treatment.

            Now, they may use the term fraudulent, but that only means at the point you were insolvent. You are not insolvent yet because there is no judgment on you for $150K yet.

            However, as pointed out, you should put time between the treatment and filing. I'm thinking that the credit card company may leave you alone seeing it was medically related. However, they could claim fraud -- as in you never intended to pay it back. Your rebuttal is that you always intended to pay it back and you are willing to pay it back, and mark it as non-dischargeable.

            Please note that the use of the term fraudulent in most contexts in Bankruptcy, is a non-criminal term. It doesn't not imply Bankruptcy Fraud which is a criminal offense.
            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
            Status: (Auto) Discharged and Closed! 5/10
            Visit My BKForum Blog: justbroke's Blog

            Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

            Comment

              #7
              Originally posted by camp View Post
              I did sign the papers with the understanding that my name would only be on the lease for 2 months; it was stupidity on my part. I was not a partner nor had anything to do with the business. However, b/c I was on the lease I am held accountable for it. The lease originally had her name and another man on it too but they both filed bankruptcy (I believe 13) immediately. It makes me so angry b/c she opened her business under another name down the street...I just don't understand how people get away with stuff like this. But anyhow, I am the only one left that the leasing company can come after. We had an asset hearing and I am pretty much playing the waiting game right now. I had a lawyer represent me and it is costing me a lot of money that I don't really have. I hate that this is a result of my stupidity and now my husband will have to suffer as well. I am not currently working so my husband's income will be used to calculate our payments, I'm assuming. But my question remains, should I wait and include the fertility treatments in the Ch 13? From my understanding, you pay it all off anyways, so it would probably make more sense to file after that, right?


              Was the business incorporated? If it was and you were not an officer, etc., you may not be held responsible. You may not have authority to sign a contract.


              What papers did you sign and what title etc. did you use when signing?

              Were you a co-signer?
              Golden Jubilee was a year-long celebration held every 50 years in which all bondmen were freed, mortgaged lands were restored to the original owners, and land was left fallow: Lev. 25:8-17

              Comment

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