Can we go Bankrupt??

[biotechsolution]

If he personally guaranteed the business loans what would stop the creditors from suing and getting a judgement in court for the amount owed? Doesn't matter if they are business loans if anything had a pg then anything you own is subject to liens or judgements through the court system. Perhaps not a garnishment, depends on the state but a judgement or lien could be just has bad.

[ssdsco]

We would probably net about $500,000 from the sale of the homes and the land.

It really seems like, the best bet is to stop paying, the debts that are killing us. it really seems like going BK, will hurt us more than help.

We need the cash from the homes to rebuild our lives!

We are meeting with an attorney next week.

It seems like going BK, is truly for people who have nothing left?

Paul

[pstallone]

If he personally guaranteed the business loans what would stop the creditors from suing and getting a judgement in court for the amount owed? Doesn't matter if they are business loans if anything had a pg then anything you own is subject to liens or judgements through the court system. Perhaps not a garnishment, depends on the state but a judgement or lien could be just has bad.

They possibly could file a lien or judgement, but they can't confiscate his assets. The lien can't be placed on his house. The lien or judgement would be against him personally. He owns the house with his wife. Its basically unenforceable. The loans were unsecured, possibly on the office furniture, the company closed down! Furniture was sold.

[biotechsolution]

Are you sure just because he owns the house with his wife it's unforceable? The would have an 'interest' in his share of the house. It would still be there if the house was sold. The only way he wouldn't be liable is he didn't personally guarantee any of the this business loans.
Doesn't matter if the business closed down and isn't operating, if he signed a personal guarantee he's still on the hook with any of his assets.

What is your reasoning for his creditors not being able to enforce liens or judgements if he personally guaranteed the business loans?

[keepmine]

I think we're getting onfo in bits and pieces. If, the home is held T by E {Tenancy by the Entirety} it's a different ballgame.

[pstallone]

Are you sure just because he owns the house with his wife it's unforceable? The would have an 'interest' in his share of the house. It would still be there if the house was sold. The only way he wouldn't be liable is he didn't personally guarantee any of the this business loans.
Doesn't matter if the business closed down and isn't operating, if he signed a personal guarantee he's still on the hook with any of his assets.

What is your reasoning for his creditors not being able to enforce liens or judgements if he personally guaranteed the business loans?

They might be able to place a lien against him, or lien on his property, which would be very difficult. They can't force him to sell his home, unless they get a court order changing the unsecured debt to secured. All his liquid assets are in his wifes name.