Two separtate chapter 7's?

[AC135]

Has anyone had to do two separate chapter 7's - once for personal & once for a business (LLC - but only one member - me).

If we add it all up -its over the limit for 13 - but separately - it could be a 7 personally & then maybe a 7 or 13 for the business.

the two goals are: keep the house - we are underwater - but have negotiated with the first & second as to significantly lower the intersest rates & thus the payments... its worth keeping...

second : keep the business intact. it is profitable - and will be even more profitable next year - We have leases that are expiring - whoo hoo!

the reason for BK is to get rid of credit card debt - mostly business - personally guarenteed... but also so personal credit card debt.

Havent touched a credit card in over a year.. but we are getting summons.. etc - so gotta get rid of the credit card debt. gotta do it soon.

so should we make the LLC a sole propriateorship & do ONE chapter 7..
or phase them -we really dont want to close the biz..
thanks

[IBroke]

Question: Are you also over the limit for CH13 if you consider your second, underwater mortgage as SECURED debt (although it could be stripped).

Sometimes, this does make difference...

[AC135]

yeah - We are so damn close - if you consider the second (or any part of the second) as unsecured - we are over the limit...
if you just consider the cc debt - we are .. just under by a thread - but if you cound atty fees the cc cards have assigned.. then we are over.

[AC135]

pkus the biz in its current state cant do a 13 - LLC - we'd need to make it a sole propriatorship -

I have had so many damn opinions - from different lawyers.. I am ever so confused. Last appt was with a biz lawyer to make the LLc a sole propriatorship - our BK lawyer told us to unwind the corp -

then the biz lawyer didn't know what to do - called the BK lawyer..

so now we are paying BOTH of them - --- to talk to each other - it seems like a bit of a scam...so I thought Id ask the forum.. before I move on...
thanks

[AC135]

double rate is - 400/hr for the bk lawyer - to talk to the biz lawyer at 300/hr...

geez

[IBroke]

yeah - We are so damn close - if you consider the second (or any part of the second) as unsecured - we are over the limit...
if you just consider the cc debt - we are .. just under by a thread - but if you cound atty fees the cc cards have assigned.. then we are over.

The second would be considered SECURED - and entirely secured since there is no "splitting". That would be the case even if you owe more on the first than what your house is worth. Although the second could be "stripped" in a CH13 just as any other unsecured debt, it is initially treated as a mortgage - so as SECURED debt and applied to the SECURED limit.

The magical word is "contingent"...

[AC135]

can't do a 13 - pretty much agreed by every lawyer we talk to..

so the question - two separate 7's one for us personally & one for the LLc - separately.

or convert the llc to a sole propriatorship and then just do ONE 7?

any insight as to which is better to do? or anyone who has done something similar.
they cost about the same.. just confuse as to which would be best.. or if there are any pitfalls I am not seeing.. thanks 'appreciate it..