Will I qualify as non-consumer?

[paulywalnutz]

I am meeting with an attorney soon but thought I would get your advice. CT resident. The following are the facts:

Business Debts:
300k left on loan to prior owner (principal and interest) personal guarantee
142k fringe benefits/employment agreement to prior owner
24k vehicle note
60k left in lease payments for space we rent

Personal debts
255k on home, 1 mortgage, house probably worth 20 k less than that
42k left on boat loan (probably worth around that)

I have no other debt. Current on all payments but will fall behind on fringe benefits and loan repayment to previous owner.My questions are:
1.) Would I count as a non-consumer, Ch. 7 case?

2.) Does the employment agreement benefits count towards the non-consumer number?

3.) Des the loan to prior owner count as non-consumer even though I made personal guarantee?

4.) Would I get to keep my house?

5.) Will I have to file BK for the business and personally due to the fact I made the personal guarantee?

Thanks!

[justbroke]

1.) Would I count as a non-consumer, Ch. 7 case?

Yes.

2.) Does the employment agreement benefits count towards the non-consumer number?

Is this an "operating" cost or some other liability that is a debt owed (such as payroll taxes that are in arrears)?

3.) Would I get to keep my house?

If you can afford to, why not.

[paulywalnutz]

THe Employment agreement consists of operatig cost benefits such as health insurance, dental, the use of 2 vehicles, gas, etc. which he receives. Thanks for your helpful replies.

[justbroke]

If the "employment" and "fringe benefits" to the prior owner is a "personal services contract", then that is a debt. I guess I'd refer to that $142K as a personal services contract.

With that, I think you're easily a non-consumer Chapter 7.

(Interesting though, that you can reject a personal services contract, but I don't know what that would do to the rest of your business or contract.)

[paulywalnutz]

I knew I forgot something ...

I also have a separate LLC unrelated to this business of which I am a 50% partner. We have 122k left on note, note paid up to date and probably worth slightly more than note by about 20k. Can the debtor from my other business go after this LLC? Okay I promise I am done with questions. Thanks in advance to all who may answer.

[justbroke]

Can the debtor from my other business go after this LLC? Okay I promise I am done with questions. Thanks in advance to all who may answer.

I'm assuming that you mean creditor not debtor. It's not whether a creditor could get to that, it's whether the Trustee could, while acting in your shoes as a Member, get to any equity. It sounds complex, and is complex, but I offer no opinion on whether a Trustee has the energy to attempt to pierce the shield to get to the other LLC.

[paulywalnutz]

Yes I meant creditor. Thanks!