top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

(long) Update to my situation...

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    (long) Update to my situation...

    For background information on my situation, please read http://www.bkforum.com/showthread.php?t=46900

    Last week we met with the bank to finalize the sale of the restaurant equipment to someone who is going to reopen the restaurant. (My father and I will not have any ownership in this entity). We were sent the closing documents in advance of the closing and sent them to our attorney. He reviewed them and had no issues with them so we proceeded with the sale.

    Our attorney did ask if we wanted him to come to the meeting and we mutually agreed that his presence was not necessary given we were signing the closing documents and endorsing the check to the bank and that was supposed to be all there was to it.

    We got to the meeting and signed all of the documents, the bank representatives (including their staff attorney and their outside counsel) asked the purchaser of the property to excuse himself and then they proceeded to "get out the rubber hoses." It was a very unprofessional ambush of my father and me. They asked how we were planning on repaying the sizeable amount we owed them and we succinctly stated to them our company was filing for bankruptcy, and that we were pursuing bankruptcy protection personally as well. The loan officer spouted back "So you're telling me I can Stick it!" (his exact words). I replied, "No, sir. Those were your words, not mine. We are pursuing bankruptcy protection."

    He told us they had invited our attorney to come and he didn't come. We told them we were invited to this meeting by the person purchasing the assets, and that nobody had communicated anything else to us about any other discussions to take place. So we didn't feel his presence was needed for us to sign the documents he (the attorney) had previously reviewd. At which point we refused to talk about anything else without our attorney present.

    They asked for a meeting with our attorney to work out some sort of settlement or payment plan to address the note.

    We called our attorney after we returned to our office and finally spoke to him this morning. Our attorney indicated that the bank seems very willing to settle for something. He is going to be working something up for us and then we can approach the bank for a meeting.

    Perhaps bankruptcy can be avoided entirely. We shall see. I just want it to move forward so I can go on about my life.

    #2
    A further update....

    We received drafts of the petitions from our attourney today (finally). To my suprise, He has me filing for a Chapter 7--if we file (there is some negotiating to do with the bank first.)

    From my perspective I view this as "better news" (not good by any means but better than the chapter 13 route) for me.

    Next step is reviewing these documents and then trying to arrange a meeting with the bank.

    Comment


      #3
      If you're going to file a 7 (since this was business debt only) than why meet with the bank at all? Let them sell all the business assets themselves.
      19% dividend

      Comment


        #4
        It's more complicated. My father has a stake in the business as well and he is in a Chapter 13 situation for personally signing the notes. The business will file chapter 7 which won't erase the personal guaranty.

        So we are going to make the bank an offer (more for my Father's benefit than mine) and see what happens.

        Comment

        bottom Ad Widget

        Collapse
        Working...
        X