What are the chances of a successful bankruptcy, without hurting my parents.

[JoeSeattle]

Quick history: My father owned a small restaurant for 15 years. In 2004, he basically transferred the business to me, provided that I pay $2000/rent. The business wasn't very profitable. Between 2004-2008, it's gross sales averaged about 140K/year, $10K net.

The business tanked in 2008, with sales of only $100k and a $5500 net. I couldn't afford the monthly rent. My father took over the business in November 2008.

Since I wasn't able to pay my rent, my father took the business over. I didn't transfer it to him.

I have accumulated $45K in personal debt, $25K of which were for business related expenses, primarily food inventory. I haven't used the cards in 4 months. I have zero assets, not even a car. My wife is expecting in June as well and I have no health insurance.

I want to file bankruptcy without impacting my fathers business, which only has about $7000 in assets.

What should I expect during a chapter 7 bankruptcy proceeding? I'm really freaking out. I don't want my parents hurt by this.

[jribe]

Quick history: My father owned a small restaurant for 15 years. In 2004, he basically transferred the business to me, provided that I pay $2000/rent. The business wasn't very profitable. Between 2004-2008, it's gross sales averaged about 140K/year, $10K net.

The business tanked in 2008, with sales of only $100k and a $5500 net. I couldn't afford the monthly rent. My father took over the business in November 2008.

Since I wasn't able to pay my rent, my father took the business over. I didn't transfer it to him.

I have accumulated $45K in personal debt, $25K of which were for business related expenses, primarily food inventory. I haven't used the cards in 4 months. I have zero assets, not even a car. My wife is expecting in June as well and I have no health insurance.

I want to file bankruptcy without impacting my fathers business, which only has about $7000 in assets.

What should I expect during a chapter 7 bankruptcy proceeding? I'm really freaking out. I don't want my parents hurt by this.

Since there is a business involved- i would get consults with good BK attorneys in the area ASAP. There are probably some guru's here that may have owned a business and can help.. How was the business set up? Sole prop? LLC? That does matter.

Is your father now running the business again? Or has it closed? You'll want to make sure you have really good records of when everything transpired as well.

Just get some advice from some attorney's in the area. You wouldn't want the trustee going after the company assets- even if it is only 7k.

Good luck

[Flamingo]

To the OP - this same posting appears in the Chapter 7 forum. Please only make your posting once in one forum to avoid confusion as to replies as there are responses to your posting also in the Chapter 7 forum.

[southernbelle]

I agree with jribe. You need to speak with a few BK attys that specialize in business BK since the business could be potentially affected by your filing. Get your records together and have a few consultations. It'll be the best free information you'll ever get, but be careful because some of the really good business BK attys in my area don't offer a free consult and charge by the hour. Good Luck.