How does this look?

[GWBcasualty]

We are right now below the means and would be allowed to file Ch. 7. I own a small business and since our home has no equity I could exempt the inventory using the California System 2... also, we don't own any luxury items just 20 years worth of "stuff".
Computers could be exempted as tool of trade and cars also... with a little help from the wild card.

We are still current on everything and used for regular purchases and business expenses.

We are thinking that we could stop paying and file in about 6 months.

I have 4 things in the back of my mind:

1) At the end of 2007 I took out a 25K cash advance, used 2/3 to pay for inventory and 1/3 went in the stock market. I doubled the money and took it out. However some went back in and was lost.

2) Obviously I had large payments to suppliers for inventory and I would have to keep paying them if I want to put food on the table (all payments via checking account)

3) We have a brilliant kid that is about to graduate and go to College. He needs a laptop.... buy now on CC (6 months before?) Wait, save cash and buy in cash? And, if so, will we need to exempt it?

I know... I need to talk to a lawyer But I was just trying to feel out what your thoughts are... Should I just try to hold out for one year and see if business really picks up?

Problem is, that if business picks up than I would have to go Ch 13... while now I would be in a sweet spot (if there is such a thing) for Ch 7.

[GWBcasualty]

So... do you see anything that could derail a Ch 7 in what I described?

[StartingOver08]

Sounds like your plan is a good one!

1) At the end of 2007 I took out a 25K cash advance, used 2/3 to pay for inventory and 1/3 went in the stock market. I doubled the money and took it out. However some went back in and was lost. If you have not taken out any cash advances or done any balance transfers since this transaction, you should be ok since it is longer than a year.

2) Obviously I had large payments to suppliers for inventory and I would have to keep paying them if I want to put food on the table (all payments via checking account)Make sure you change checking accounts if you owe money to the bank where you keep your accounts. Don't pay them out of the new account. The idea is so they do not attach or set off your debt through your accounts before you file.

3) We have a brilliant kid that is about to graduate and go to College. He needs a laptop.... buy now on CC (6 months before?) Wait, save cash and buy in cash? And, if so, will we need to exempt it? cash payment, keep the purchase less than $600 to avoid 'luxury' item

I know... I need to talk to a lawyer But I was just trying to feel out what your thoughts are... Should I just try to hold out for one year and see if business really picks up?

Problem is, that if business picks up than I would have to go Ch 13... while now I would be in a sweet spot (if there is such a thing) for Ch 7.

Sounds like you have a valid plan, remember the look back period for income is 6 months but the look back for insider payments is a year. So you sound fine.

[GWBcasualty]

If you have not taken out any cash advances or done any balance transfers since this transaction, you should be ok since it is longer than a year.

Thank you.
I did use the cards to stay current... the reason for the use of debt is the debt itself since business has been slumping and I see the debt reaching a level so high that business coming back " just to normal" wouldn't be enough to get out of debt.

I cannot stop using them if I don't stop paying them, but I have never missed a payment in my life and so far haven't been able to bring myself to do it. I guess that's what I'll have to tell the trustee if there are concerns... even now, I have the INTENT to repay... sadly the circumstances don't seem to allow it.

So, I guess 6 months from the moment I stop using/paying it's the safe way to go.