Hi everyone, I am new to this so please bear with what might seem to be amateur questions. I have enjoyed reading several posts that have been educating and informative. I even admit that it has helped with my anxiety to read other peoples stories and to realize that I am not the only one out there who is struggling. I do have a few questions that apply to my situation that I couldn't find a direct answer to in other threads. A brief overview..
My wife works as a teacher, her income alone puts us under the means test median. I am currently self-employed and have been making a decent income for the prior 5 years. Our combined income puts us significantly above the means test median. Over the past 6 months my business income began to slide due to a major client basically cutting back on orders due to their own economic issues. While we have been able to stay afloat, and still above the means test median for income, we have slowly began to struggle with keeping on top of payments (consumer debt totalling around 100K+ in addition to some back taxes). In addition, we have consumed our savings. December 2012 was my worst business month for the year and January has started off even slower. I am definitely starting to wonder if it is worth the struggle to keep paying on debt that may eventually go into default anyway.
I have a fairly decent grasp of the means test and realize that to qualify for Chapter 7, my income would have to significantly drop for the next 4-5 months before I would actually qualify for a Chapter 7. Chapter 13 does not appeal to us because we already enrolled in a DMP to help ease our interest rates on CC's etc. In essence, I can't see Chapter 13 being much different than our current DMP would be.
In a nutshell, here is my main question.... Is it possible for me to close my business due to declining work, pull my kids out of daycare (I can't afford it anymore so I would have to care for them myself), and then file for Chapter 7 citing unemployment. I know it's a crazy question, but I feel like I am running out of options. At my current income levels for the prior month and a half, I won't be able to sustain solvency and trying to stay afloat feels like prolonging the inevitable.
If there is a thread that already specifically addresses closing a business to file Ch 7, please point me to it. Otherwise, your thoughts and expertise are greatly appreciated.
My wife works as a teacher, her income alone puts us under the means test median. I am currently self-employed and have been making a decent income for the prior 5 years. Our combined income puts us significantly above the means test median. Over the past 6 months my business income began to slide due to a major client basically cutting back on orders due to their own economic issues. While we have been able to stay afloat, and still above the means test median for income, we have slowly began to struggle with keeping on top of payments (consumer debt totalling around 100K+ in addition to some back taxes). In addition, we have consumed our savings. December 2012 was my worst business month for the year and January has started off even slower. I am definitely starting to wonder if it is worth the struggle to keep paying on debt that may eventually go into default anyway.
I have a fairly decent grasp of the means test and realize that to qualify for Chapter 7, my income would have to significantly drop for the next 4-5 months before I would actually qualify for a Chapter 7. Chapter 13 does not appeal to us because we already enrolled in a DMP to help ease our interest rates on CC's etc. In essence, I can't see Chapter 13 being much different than our current DMP would be.
In a nutshell, here is my main question.... Is it possible for me to close my business due to declining work, pull my kids out of daycare (I can't afford it anymore so I would have to care for them myself), and then file for Chapter 7 citing unemployment. I know it's a crazy question, but I feel like I am running out of options. At my current income levels for the prior month and a half, I won't be able to sustain solvency and trying to stay afloat feels like prolonging the inevitable.
If there is a thread that already specifically addresses closing a business to file Ch 7, please point me to it. Otherwise, your thoughts and expertise are greatly appreciated.
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