California - I owned a business and leveraged equity, SBA and had personal guarantees on a business lease. All of my business credit cards were personal cards used for business only. Then to market dropped and so we went.
My spouse makes above the required income for Chapter 7, and therefore we thought we would not qualify to relieve all the debts. We figured we would be paying back the business debts for years to come. Turns out since 50% or more of my credit card debt was business related (and could be proven), we did not require the Means Test and could file Chapter 7 outright. Our retirement, cash, kids accounts were all protected.
We have no equity in the house due to 1st, 2nd and SBA liens. We will lose our house in the process, but have not made payments since May 09. We recieved notification of Automatice Reflief of Stay by our 2nd, and it was approved. Now they have to file a court order and start the process for foreclosure. Don't know when that will happen. I figure we have at least 120 days, or more, just because of the back log with the banks. On top of that, we don't have to pay property taxes that are due in the next couple months.
The scariest parts are (1) the emotion of losing the house and moving the family. That will take its toll. And (2) CASH! We have always had cc's to back us up just in case. Now it is pay as you go, but we are actually saving money. Three more days until no complaints can be entered by creditors and then the discharge. Wish me luck!
NOTE - some advice on listing accounts. Make sure you list every account your name is associated. I forgot my name was listed on my mothers WFargo checking account and WF froze $90k without hesitation. It took documentation and three weeks to release the funds back to her. Also my wife was listed on a checking account (with another man
). It was a fund raising account for church that we all forgot about. We had to explain that one to our firends as well because they received notice of our bk.
My spouse makes above the required income for Chapter 7, and therefore we thought we would not qualify to relieve all the debts. We figured we would be paying back the business debts for years to come. Turns out since 50% or more of my credit card debt was business related (and could be proven), we did not require the Means Test and could file Chapter 7 outright. Our retirement, cash, kids accounts were all protected.
We have no equity in the house due to 1st, 2nd and SBA liens. We will lose our house in the process, but have not made payments since May 09. We recieved notification of Automatice Reflief of Stay by our 2nd, and it was approved. Now they have to file a court order and start the process for foreclosure. Don't know when that will happen. I figure we have at least 120 days, or more, just because of the back log with the banks. On top of that, we don't have to pay property taxes that are due in the next couple months.
The scariest parts are (1) the emotion of losing the house and moving the family. That will take its toll. And (2) CASH! We have always had cc's to back us up just in case. Now it is pay as you go, but we are actually saving money. Three more days until no complaints can be entered by creditors and then the discharge. Wish me luck!
NOTE - some advice on listing accounts. Make sure you list every account your name is associated. I forgot my name was listed on my mothers WFargo checking account and WF froze $90k without hesitation. It took documentation and three weeks to release the funds back to her. Also my wife was listed on a checking account (with another man
). It was a fund raising account for church that we all forgot about. We had to explain that one to our firends as well because they received notice of our bk.