To file or not to file?

[GWBcasualty]

Hi everyone,
I have not posted in a long time.

Here is my situation in a nutshell.

I own a business (sole prop) was hurt by recession, real estate and some bad choices like most people in this forum.

I stopped paying my CC in early 2009. I am current on my mortgage although my house is upside down.

I was about to file BK since 4 lawsuit were filed against me when, given the rulings on NAF and the arbitration clause in the CC agreements, I tried to go the "fight them" road. I did that mainly to buy time for my biz to get better and have better visibility.
Like the most experienced posters always say, once you played the Ch 7 card you can't play it again for a while and you better have your ducks in a row.

Anyway:
After sending arbitration election and C&D letters and answering to lawsuit with Motions to Compel arbitration here is my situation.

3 lawsuits have been dismissed
1 is soon to be dismissed
1 account (BofA) was settled at 6% ($17k balance)
10 accounts are silent (no calls, no letters, nothing since last September)

At this point I am seriously thinking of NOT filing BK and wait for the SOL, which is only 12 months away for some of the debts.

Here is the catch:
1) My business and the economy in my sector is not getting any better. I have some debts to 3 overseas vendors (small businesses, artisans).
Q) What is if I just close the sole prop, liquidate the inventory and offer a small settlement? Anyone went this route successfully?

2) I have a second job and in August I may start making more money. Potentially, but not certainly, pushing me in a CH 13. July 10th- July 15th looks like a sweet time to file to get a Ch 7.
Q) Anyone here successfully negotiated a cramdown of a second with BofA in a Ch 7.... or better yet obtained a lien strip in a Ch 7??

Thanks and good luck everyone!

[newbie2]

I don't know the answers to your questions regarding the business debt, but I can answer the question about stripping a 2nd mortgage in a Chapter 7: No can do. Only in a Chapter 13 can you strip that 2nd mortgage. No cram downs either. You can discharge the debt, then negotiate later with the 2nd to release the lien for X amount of money. It's a risk (they can say no), but many people are successful at it.

[shark66]

Do you have the same bank holding both of your mortgages or not? That is one of the key questions in my opinion.

While I don't see the small overseas vendors taking you to court for small amounts of money, I'd be careful...there are other ways of demanding payment...and I've seen it happen to people. Not pretty.

Liquidating the LLC and paying off some of that "overseas" debt might be a good idea.

If you're certain that you can make it to the point of SOL without any of the creditors obtaining a judgment, more power to you. In that set of circumstances filing would not make any sense.

My $0.02 only...

Good luck.

[GWBcasualty]

Do you have the same bank holding both of your mortgages or not? That is one of the key questions in my opinion.

Good luck.

Yes.

[DYLAN150]

GWB ,3 lawsuits have been dismissed, just wondering how this happened?

[GWBcasualty]

GWB ,3 lawsuits have been dismissed, just wondering how this happened?

Motion to Compel Arbitration.

If you defaulted before they removed the Arb clause from their contract they are stuck.

Google: arbitration, motion, compel, jams and you should have an idea on how that works.