New Here! Business ?'s. Family ?'s.

[lclounge]

Hi! I'm new here, but I'm so glad I found this forum.

A little background:My first concern:My second concern:

[frustrated7]

Welcome to the forum. You will find so many wonderful and helpful people. I'm still pretty new at this myself, but I will answer what I can for you.

I didn't have to fill out anything for an initial BK consult. I did need to know some basic information, which I already knew, about what sort of assets we had and how around how much debt and the different types. But I didn't have to fill out any paperwork until I decided to go with an attorney. To actually file for BK you will have to fill everything out, but I'm not sure why you can't get a basic consult without having to do that.

I don't know anything about discharging business debts in BK, though there are lots of people on here who should be able to help you with that.

As for the debt/gift with your parents, talk to your attorney regarding that. I'm not sure exactly how that would be classified. If it's considered a debt, then it would need to be listed. There is no reason, imho, for you to reaffirm a debt with your parents and have your attorney charge you the ridiculous sum of $250 for that. If you do list them as a debt, just explain to them that you will still honor your part of the agreement with them. You won't be able to do any of that while you are in the BK process, but it sounds like your arrangement with them is farther down the road. Just because a debt is discharged in BK does not mean you cannot choose to pay it back later. If ten years from now you win the lottery, you could choose to pay back every penny you owed to your creditors before the BK, even though you would not be obligated to do so.

You are not a horrible person for coming to this point. You are making a business decision and the best decision you can for yourself and your family at this time. Don't beat yourself up over this. If you have problems with your parents about this, feel free to PM me...I'm in the same boat.

[lclounge]

Thanks

Thanks, frustrated7. It's nice to have the support!

I thought it seemed odd that we have to fill all of this out first. The first attorney I contacted made it seem so important that we have everything filled out perfectly before we meet so that we can move on it right away. How can I fill it out perfectly without knowing what I'm doing?!? We've decided to go with the family acquaintance, but his packet is even longer.

We literally have 50 pages to fill out about our house, our debts, everything we own and the fair market value. Plus we have to send in everything: title to our house, deed of trust, 3 years of tax returns, 6 months of paystubs, real estate tax statements... everything... before we even get a consultation. What if we don't like the lawyer?

[StartingOver08]

If the attorney says that you can not put your small business debt with a personal guarantee on the petition for BK 7 - run away. Find an attorney that has handled personal ch 7's with small business debt.

It is very unusual for you to fill out the entire packet without the initial consultation. Did the attorney give you a 'phone consult'? Maybe that is what they are considering an initial consultation!

There is much more to say - can't right now. Read the sticky's.

[OhioFiler]

Thanks, frustrated7. It's nice to have the support!

I thought it seemed odd that we have to fill all of this out first. The first attorney I contacted made it seem so important that we have everything filled out perfectly before we meet so that we can move on it right away. How can I fill it out perfectly without knowing what I'm doing?!? We've decided to go with the family acquaintance, but his packet is even longer.

We literally have 50 pages to fill out about our house, our debts, everything we own and the fair market value. Plus we have to send in everything: title to our house, deed of trust, 3 years of tax returns, 6 months of paystubs, real estate tax statements... everything... before we even get a consultation. What if we don't like the lawyer?

I'd find another attorney. I wouldn't give that kind of detail to anyone if I weren't hiring him/her. If you're going to complete everything yourself why not file pro se?!

Your parents gave you a gift. I would not consider that a debt. When your parents are old and need assistance you'll return the favor to them. Do you have a signed agreement regarding the gift and the need to pay it back?

You should have no problem discharging all your debts, personal or business. Does your LLC have a value or do you have negative equity in the business?

[lclounge]

It seems that ALL of the attorneys I've found in this area require the packet be filled out first. I'm going to reread the initial letters for the 3 packets we received. Perhaps knowing that the first one wanted the packet filled out completely caused me to think the others are the same. My neighbor is going through this as well and she found the same thing. She's been at it for 6 months!

Since I haven't talked to any attorneys I don't know what they'll say about the business debt. I don't know what they'll say about anything. I've spoken to 3 receptionists, that's it.

The business has no "worth" other than a client list and the only thing I have invested in it is the debt we've incurred. What I'd love to hear is that the business can take the BK hit and take our debt with it, since it was incurred in the act of starting the business - however I know that's wishful thinking!

I see there's a filing pro se topic here. I had considered it initially, but thought we might have too complicated a situation to attempt it. I'll have to read more about it...

There is a written record, at my parents' house of the initial loan they gave us to pay off credit cards in 2004, and we were making payments to them for a few months. However when they gave us the money for the down payment it all got rolled in together, so the loan record is outdated. If they even still have it. It's not on public file. There is no written record of the down payment money - however we talked about recording a deed of trust in case anything happened to us, but we never did.

[StartingOver08]

If you have small business debt with personal guarantees it CAN be included on your Ch 7 personal BK. BTDT. Check the section here for small business info - almost always it is better to file a personal Ch 7 and just close the business - rather than file a business Ch 7.