Business owner declaring chapter 7 ...... need some questions answered please

[mcordry]

This is probably going to be a long post... so please bear with me. I am a co-owner of a hair salon that has been in business for 10 years. When we first opened the salon we got a business loan that my business partner and I both signed (this loan has been paid off) and I also used a personal credit card for expenses. We have used this card only for business purposes for the last 10 years. I also have another credit card that I have used for the business. So between the two personal cards I have business debt in the amount of $54,000. The interest has continued to go up on these credit cards ( i have never been late on a payment and I called to get them to lower the interest and they said no, even though i have been a loyal customer for years) and now we are paying about $700 in interest alone monthly. Needless to say we are struggling because of the economy and are having a hard time meeting these payments. I am considering declaring personal bankruptcy ( a hard decision needless to say i have always been one to say i would never do this but here I am).
So I have a few questions:
(1) My business relies on my services , all the furniture we have is 10 years oldl. We are a general partnership.We also have a few other expenses except what is listed above. We each have a usiness credit card in each name and I would want to declare mine in my bankruptcy. We also have a couple of small bank loans that we would want to continue to pay on. Would it be possible to keep the business? I don't see much equity in it, but would a trustee? I also owe a loan from my sister that we have been paying on for 2 1/2 years, we would want to continue to pay on this too, is that possible.
(2) I have 2 personal credit cards and a few doctor bills that I would want to list on the bankruptcy, and I own a home that I owe about $103,000 on, and it is worth about $100,000, so I think I am ok on that. But I would want to keep my house. I know everyone on here says not to reaffirm (I don't know if I could anyway because what I make weekly wouldn't support this, but I would like to stay and pay, I don't know if this is possible in Georgia. my mortgage is with Cenlar. ) Does anyone have any experience with this mortgage company letting you "stay and pay".? I have never been late with a payment and I am hoping I can do this.
(3) I have a car that is about 18 months old and I owe $28,000 on it and the Kelly Blue Book is about $20,000 . I would reaffirm this debt so I could keep my car.
(4) I just received $8000 from my mothers estate , I would like to keep as much of this as possible ( I know, I know, I would to have my cake and eat it too) . The way I have read these forums is that if my bankruptcy is planned well , it is possible. So is there anyway that I can keep the majority of this money? I hate the thought of giving this money to the trustee to give to these credit card companies that I feel have forced many people to declare bankruptcy because of raising the interest rates of these cards and making it almost impossible for people to pay off their debt.

So that is my story, by stalking these forums I think I definitely meet the means test, and I just don't want to loose everything, especially my business. This is my only means of income and I am hoping that the trustee doesn't take it. I will be making a appointment with an attorney who has experience in businesses and bankruptcy.

Any opinions will be appreciated...... I am so nervous going into this and I hate that this is what it has come to but my stress level won't take much more of this, and I need to find a way to start fresh.

[keepmine]

Here are Ga.'s exemptions.

http://www.thebankruptcysite.org/exemptions/georgia.html

Looks like you can apply up to $5K of unused homestaed for any property. That should take care of a good chunk of that $8K. You could also contribute to an IRA or 401K. Or, use a portion for your legal fees.
Don't be in any hurry to reaffirm the car until, you talk with a few lawyers and see what the law is in your district. In many districts, all you need do is offer to reaffirm, If your lawyer won't sign off bbecause he/she believes it won't be in your best interest then, you've done what the law requires and as long as you're current, you keep the car.
For heavens sake, don't even think about reaffirming that mortgage if you have doubts you can make the payments comfortably.

Big problem is the loan repayments to your sister. Your sister is an insider and the payments are a preference issue. You favored one creditor over another and the trustee can sue your sister for the return of any payments made in the year prior to filing. Post bk, you may repay any creditor you please.

Most bk layers give free or lowcost initial consultations. Speak with a few and get all of your options explained.

[LadyInTheRed]

What happens to the business will depend on how the trustee sees its value. He could force liquidation of the assets so that your half of the proceeds go to your creditors. He could try to sell your interest in the partnership to a third party, to your partner or even to you.

I will be making a appointment with an attorney who has experience in businesses and bankruptcy.

That really is the best way to get an answer to your questions about the business. An experienced local attorney should be familiar with how the local trustees deal with these situations. Your partner may want to consult with an attorney too to make sure her interests are protected when dealing with the trustee.