I am considering BK7, and I would appreciate any and all advice on the best way to plan for it.
I am married, live in MI, and have one child, so I am a work-from-home dad. The median income just published for MI is $63,339. We made more than that last year, but my wife is the breadwinner, and her income is less than the median income, so several months with no income from me (read on) will definitely get us below that amount. I am also in school full-time, and should have my degree (Web Development) in 2.5 years.
I own and operate a single-member LLC from home, which I think I need to close shortly. Sales have all but disappeared the last 6 weeks, and they had barely been better the previous 4 months. I have also been hit hard by the increased cost of freight, and that has cut into my margins a great deal. I owe suppliers somewhere between $8-12k, and no inventory or other appreciable assets (desk, chair, printer, etc). I am around 30-60 days past due on these suppliers.
I do have a Staples charge and OfficeDepot charge, both with zero balances. I also have a $1 buyout lease that I am current on for two computers, and would like to keep the computers, keep making the payment ($183/mo), and reaffirm this loan if I do go the BK route (they are secured, I am assuming). I also have a Prosper loan for the business that has around 4k balance.
All debts of the business were PG'd.
I also have around $18k in personal credit card debt, some from business, some from personal. DW is an authorized user on some of those cards, but they are not joint accounts. All are current, but not all are open (three are closed accounts that I still pay). DW has a few cards in her name, around $4k.
We are both on the title and mortgage for the house (her first), we paid $126,900 in 2002, our balance on the mortgage (30 years at 5.375) is $120,336. We definitely want to keep the house, which is probably now valued around the same we paid for it. Damn MI economy!
We also own a 1999 car free and clear, titled in her name only, KBB lists the value as $3270. This is our only vehicle (I work from home, she works close), so we will be keeping it.
I have already begun selling some of our stuff to pay bills, prior to even considering BK, I have been using this to pay down CCs and other bills as they come up.
We also have a joint mortgage on a timeshare that we have for sale, and hopefully it will sell within the next few months. We are current on this, and plan to break even on the sale (not make money or lose money versus what we have into it).
I think that is all of the pertinent information, if I have left anything out, please let me know. We had already been cutting back a lot, so I think we can swing it with just her income for a while, or with me working part-time somewhere.
So, the upshot is, I have about $34k in personal/business unsecured debt (not counting the computers), and I'm about to have no income, since I can't pay my business bills. At this point, I am considering filing BK7 for myself only, and would love any advice on preparing. I am actively engaged in securing a good BK attorney, hoping to meet with a few over the next week or so.
Here are some specific questions I have:
1. How does the authorized user status on my credit card accounts affect her if I file BK? I am also an authorized user on a few cards that are solely in her name.
2. Is there any danger in the house being forced into the BK? DW would qualify on the 31% on her income alone.
3. I certainly have no intent to defraud anyone, but how do I handle customers and suppliers? I don't have the money to pay my vendors, and I don't have the money to refund the customers awaiting products, either. I presume that their credit card companies will make them whole, but I don't know. This is perhaps my biggest source of stress at this point.
4. How does the LLC factor in? Am I filing two BKs, one for me personally, or one for myself and one for the LLC? If two, does the timing matter?
Sorry for the long post, but I figured that more information was better. I appreciate your time and consideration.I am considering BK7, and I would appreciate any and all advice on the best way to plan for it.
I am married, live in MI, and have one child, so I am a work-from-home dad. The median income just published for MI is $63,339. We made more than that last year, but my wife is the breadwinner, and her income is less than the median income, so several months with no income from me (read on) will definitely get us below that amount. I am also in school full-time, and should have my degree (Web Development) in 2.5 years.
I own and operate a single-member LLC from home, which I think I need to close shortly. Sales have all but disappeared the last 6 weeks, and they had barely been better the previous 4 months. I have also been hit hard by the increased cost of freight, and that has cut into my margins a great deal. I owe suppliers somewhere between $8-12k, and no inventory or other appreciable assets (desk, chair, printer, etc). I am around 30-60 days past due on these suppliers.
I do have a Staples charge and OfficeDepot charge, both with zero balances. I also have a $1 buyout lease that I am current on for two computers, and would like to keep the computers, keep making the payment ($183/mo), and reaffirm this loan if I do go the BK route (they are secured, I am assuming). I also have a Prosper loan for the business that has around 4k balance.
All debts of the business were PG'd.
I also have around $18k in personal credit card debt, some from business, some from personal. DW is an authorized user on some of those cards, but they are not joint accounts. All are current, but not all are open (three are closed accounts that I still pay). DW has a few cards in her name, around $4k.
We are both on the title and mortgage for the house (her first), we paid $126,900 in 2002, our balance on the mortgage (30 years at 5.375) is $120,336. We definitely want to keep the house, which is probably now valued around the same we paid for it. Damn MI economy!
We also own a 1999 car free and clear, titled in her name only, KBB lists the value as $3270. This is our only vehicle (I work from home, she works close), so we will be keeping it.
I have already begun selling some of our stuff to pay bills, prior to even considering BK, I have been using this to pay down CCs and other bills as they come up.
We also have a joint mortgage on a timeshare that we have for sale, and hopefully it will sell within the next few months. We are current on this, and plan to break even on the sale (not make money or lose money versus what we have into it).
I think that is all of the pertinent information, if I have left anything out, please let me know. We had already been cutting back a lot, so I think we can swing it with just her income for a while, or with me working part-time somewhere.
So, the upshot is, I have about $34k in personal/business unsecured debt (not counting the computers), and I'm about to have no income, since I can't pay my business bills. At this point, I am considering filing BK7 for myself only, and would love any advice on preparing. I am actively engaged in securing a good BK attorney, hoping to meet with a few over the next week or so.
Here are some specific questions I have:
1. How does the authorized user status on my credit card accounts affect her if I file BK? I am also an authorized user on a few cards that are solely in her name.
2. Is there any danger in the house being forced into the BK? DW would qualify on the 31% on her income alone.
3. I certainly have no intent to defraud anyone, but how do I handle customers and suppliers? I don't have the money to pay my vendors, and I don't have the money to refund the customers awaiting products, either. I presume that their credit card companies will make them whole, but I don't know. This is perhaps my biggest source of stress at this point.
4. How does the LLC factor in? Am I filing two BKs, one for me personally, or one for myself and one for the LLC? If two, does the timing matter?
Sorry for the long post, but I figured that more information was better. I appreciate your time and consideration.
I am married, live in MI, and have one child, so I am a work-from-home dad. The median income just published for MI is $63,339. We made more than that last year, but my wife is the breadwinner, and her income is less than the median income, so several months with no income from me (read on) will definitely get us below that amount. I am also in school full-time, and should have my degree (Web Development) in 2.5 years.
I own and operate a single-member LLC from home, which I think I need to close shortly. Sales have all but disappeared the last 6 weeks, and they had barely been better the previous 4 months. I have also been hit hard by the increased cost of freight, and that has cut into my margins a great deal. I owe suppliers somewhere between $8-12k, and no inventory or other appreciable assets (desk, chair, printer, etc). I am around 30-60 days past due on these suppliers.
I do have a Staples charge and OfficeDepot charge, both with zero balances. I also have a $1 buyout lease that I am current on for two computers, and would like to keep the computers, keep making the payment ($183/mo), and reaffirm this loan if I do go the BK route (they are secured, I am assuming). I also have a Prosper loan for the business that has around 4k balance.
All debts of the business were PG'd.
I also have around $18k in personal credit card debt, some from business, some from personal. DW is an authorized user on some of those cards, but they are not joint accounts. All are current, but not all are open (three are closed accounts that I still pay). DW has a few cards in her name, around $4k.
We are both on the title and mortgage for the house (her first), we paid $126,900 in 2002, our balance on the mortgage (30 years at 5.375) is $120,336. We definitely want to keep the house, which is probably now valued around the same we paid for it. Damn MI economy!
We also own a 1999 car free and clear, titled in her name only, KBB lists the value as $3270. This is our only vehicle (I work from home, she works close), so we will be keeping it.
I have already begun selling some of our stuff to pay bills, prior to even considering BK, I have been using this to pay down CCs and other bills as they come up.
We also have a joint mortgage on a timeshare that we have for sale, and hopefully it will sell within the next few months. We are current on this, and plan to break even on the sale (not make money or lose money versus what we have into it).
I think that is all of the pertinent information, if I have left anything out, please let me know. We had already been cutting back a lot, so I think we can swing it with just her income for a while, or with me working part-time somewhere.
So, the upshot is, I have about $34k in personal/business unsecured debt (not counting the computers), and I'm about to have no income, since I can't pay my business bills. At this point, I am considering filing BK7 for myself only, and would love any advice on preparing. I am actively engaged in securing a good BK attorney, hoping to meet with a few over the next week or so.
Here are some specific questions I have:
1. How does the authorized user status on my credit card accounts affect her if I file BK? I am also an authorized user on a few cards that are solely in her name.
2. Is there any danger in the house being forced into the BK? DW would qualify on the 31% on her income alone.
3. I certainly have no intent to defraud anyone, but how do I handle customers and suppliers? I don't have the money to pay my vendors, and I don't have the money to refund the customers awaiting products, either. I presume that their credit card companies will make them whole, but I don't know. This is perhaps my biggest source of stress at this point.
4. How does the LLC factor in? Am I filing two BKs, one for me personally, or one for myself and one for the LLC? If two, does the timing matter?
Sorry for the long post, but I figured that more information was better. I appreciate your time and consideration.I am considering BK7, and I would appreciate any and all advice on the best way to plan for it.
I am married, live in MI, and have one child, so I am a work-from-home dad. The median income just published for MI is $63,339. We made more than that last year, but my wife is the breadwinner, and her income is less than the median income, so several months with no income from me (read on) will definitely get us below that amount. I am also in school full-time, and should have my degree (Web Development) in 2.5 years.
I own and operate a single-member LLC from home, which I think I need to close shortly. Sales have all but disappeared the last 6 weeks, and they had barely been better the previous 4 months. I have also been hit hard by the increased cost of freight, and that has cut into my margins a great deal. I owe suppliers somewhere between $8-12k, and no inventory or other appreciable assets (desk, chair, printer, etc). I am around 30-60 days past due on these suppliers.
I do have a Staples charge and OfficeDepot charge, both with zero balances. I also have a $1 buyout lease that I am current on for two computers, and would like to keep the computers, keep making the payment ($183/mo), and reaffirm this loan if I do go the BK route (they are secured, I am assuming). I also have a Prosper loan for the business that has around 4k balance.
All debts of the business were PG'd.
I also have around $18k in personal credit card debt, some from business, some from personal. DW is an authorized user on some of those cards, but they are not joint accounts. All are current, but not all are open (three are closed accounts that I still pay). DW has a few cards in her name, around $4k.
We are both on the title and mortgage for the house (her first), we paid $126,900 in 2002, our balance on the mortgage (30 years at 5.375) is $120,336. We definitely want to keep the house, which is probably now valued around the same we paid for it. Damn MI economy!
We also own a 1999 car free and clear, titled in her name only, KBB lists the value as $3270. This is our only vehicle (I work from home, she works close), so we will be keeping it.
I have already begun selling some of our stuff to pay bills, prior to even considering BK, I have been using this to pay down CCs and other bills as they come up.
We also have a joint mortgage on a timeshare that we have for sale, and hopefully it will sell within the next few months. We are current on this, and plan to break even on the sale (not make money or lose money versus what we have into it).
I think that is all of the pertinent information, if I have left anything out, please let me know. We had already been cutting back a lot, so I think we can swing it with just her income for a while, or with me working part-time somewhere.
So, the upshot is, I have about $34k in personal/business unsecured debt (not counting the computers), and I'm about to have no income, since I can't pay my business bills. At this point, I am considering filing BK7 for myself only, and would love any advice on preparing. I am actively engaged in securing a good BK attorney, hoping to meet with a few over the next week or so.
Here are some specific questions I have:
1. How does the authorized user status on my credit card accounts affect her if I file BK? I am also an authorized user on a few cards that are solely in her name.
2. Is there any danger in the house being forced into the BK? DW would qualify on the 31% on her income alone.
3. I certainly have no intent to defraud anyone, but how do I handle customers and suppliers? I don't have the money to pay my vendors, and I don't have the money to refund the customers awaiting products, either. I presume that their credit card companies will make them whole, but I don't know. This is perhaps my biggest source of stress at this point.
4. How does the LLC factor in? Am I filing two BKs, one for me personally, or one for myself and one for the LLC? If two, does the timing matter?
Sorry for the long post, but I figured that more information was better. I appreciate your time and consideration.
Because she is only an authorized user, that should be easy to do right away.
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