Ok...I'm lost..and nervous

[rmd]

Filing BK next Friday. We owned a small business and are behind on rent and still have 3 years left on lease. We just got a lawsuit from them for $320K, includes, past, present, and future rent. Our CC are from the biz and equal about $50k. We are up to date on everything. We would like to keep our house (owe $110K) and understand our 2nd mortgage may not be included in the BK.

Reading over how much everyone owes per month, I know it is different for everyone. With our income minus our basic expenses(no luxury expenses) per the IRS, we are just breaking even. I don't know how they are going to get anything from us when we are just doing the bare min. Am I freaking out too much?!? Help! Suggestions!

thanks, rmd

[researchnerd]

If you stop paying your CCs and other bills not required for day to day living, you'll have some money left over to fund a Ch13 plan.

[rmd]

I already paid my attorney for Chapter 13 filing.

[researchnerd]

I already paid my attorney for Chapter 13 filing.

Cool. Did you ask your attorney about whether you have enough disposable income to fund a plan? It's hard to give answers here without more background info.

[rmd]

I guess we haven't gotten that far, or I will know more next Friday. In our initial meeting, we took a report of our income (past 6 months) and then all of our expenses including debt. I guess the reason he wants to do a 13 is cause we want to keep our house AND for a family of 4 my husband made, get this, $200 more than what the max income for us to be able to file 7 is. So, in a 13, if there is no disposable income left, how does that work?!?

[researchnerd]

If your attorney is a good one, he or she may be able to find a way around that $200 so you can file Ch7. If there's no disposable income left you won't be able to fund a Ch13 plan. Unfortunately some people do fall into the chasm between Ch7 and Ch13, and unless your circumstances change one way or another, bankruptcy is not going to work.

It sounds like the majority of your debts are related to the business - can you file for business BK instead of personal?

[rmd]

have a personal gurantee on it...so we have to file to get out of the lease. we made too much to do 7, but after the means test that i took online, we did qualify. our lawyer supposed to be one of the best, so we'll see. i might be just jumping the gun! been told by the paralegal it'll probably be 10% of our unsecured (we have no secured debt cause we are paying on our house and car is paid for)...