First I cant say how wonderful it was to stumble across this forum. So reassuring and calming to know I am not alone!
I am utterly terrified of what lies ahead for me and my business partner (also my mother). We have tried to avoid this outcome - but things have gotten far to difficult to juggle, cashflow is so reduced and no signs of getting better...it has been so agonizing! In our wildest nightmares we never saw this actually happening. We plan to file 7 for the business and because of that, file personal chapter 7 bk for ourselves.The lawyer we decided to work with has told us that since neither of our husbands cosigned for anything for the business (SBA, Lease, etc) that our spouses will not have their credit affected....but we are worried about a couple things (I am sure there will be more), and would love to hear about other peoples experiences:
My husband and I combined (I have been able to pay myself very little) make below the median for our area, but my moms new husband I am sure is above (my mom has not gotten any income from the business in several months)...will that affect our ability to file 7? Will my moms husband somehow get shafted and have to pay our debt?? The debt that we owe for the shop is pretty considerable...including the term of the lease, SBA loan, sales tax past due and other bills, around $350000. Personally, thanks to the business (never again will I use personal credit cards to bridge the gaps for a business) both my mom and I have credit card debt as well.The business itself does not have assets enough to cover our debt, and my mom and I combined have no property, no homes (I rent, she moved into her husbands home when they got married) I lease a car.....we have no real assets that are not exempt at all.
My other question was taxes....we made the mistake of falling behind in our sales taxes (in favor of payroll and rent) as of last summer when everything went to hell from a retail perspective, and while we are on a payment plan with our state to repay it as a business, what happens after we file? I have a state tax lien on my credit, and I know that it does not get wiped away (I wish it could - I hate having that on my crapified credit like a cherry on a wretched sundae), but I am petrified that I personally will have to pay the same amount ($1350) I am paying now toward our balance each month after the business closes. No chance I will be able to cover it post business bk and still pay rent and our car lease payment (my husband and I share a car - love public transport) and eat a little too! I need to get a job first since very soon my only source of income will be finished. Does anyone have any experience with renegotiating sales tax payments or even getting the amount owed decreased??
In general we are really needing a ray of hope, as we try to maintain the minimum amount needed to keep the business running so we can make the money to pay the lawyer....all the while hoping everything really will be ok.
Thanks in advance!
I am utterly terrified of what lies ahead for me and my business partner (also my mother). We have tried to avoid this outcome - but things have gotten far to difficult to juggle, cashflow is so reduced and no signs of getting better...it has been so agonizing! In our wildest nightmares we never saw this actually happening. We plan to file 7 for the business and because of that, file personal chapter 7 bk for ourselves.The lawyer we decided to work with has told us that since neither of our husbands cosigned for anything for the business (SBA, Lease, etc) that our spouses will not have their credit affected....but we are worried about a couple things (I am sure there will be more), and would love to hear about other peoples experiences:
My husband and I combined (I have been able to pay myself very little) make below the median for our area, but my moms new husband I am sure is above (my mom has not gotten any income from the business in several months)...will that affect our ability to file 7? Will my moms husband somehow get shafted and have to pay our debt?? The debt that we owe for the shop is pretty considerable...including the term of the lease, SBA loan, sales tax past due and other bills, around $350000. Personally, thanks to the business (never again will I use personal credit cards to bridge the gaps for a business) both my mom and I have credit card debt as well.The business itself does not have assets enough to cover our debt, and my mom and I combined have no property, no homes (I rent, she moved into her husbands home when they got married) I lease a car.....we have no real assets that are not exempt at all.
My other question was taxes....we made the mistake of falling behind in our sales taxes (in favor of payroll and rent) as of last summer when everything went to hell from a retail perspective, and while we are on a payment plan with our state to repay it as a business, what happens after we file? I have a state tax lien on my credit, and I know that it does not get wiped away (I wish it could - I hate having that on my crapified credit like a cherry on a wretched sundae), but I am petrified that I personally will have to pay the same amount ($1350) I am paying now toward our balance each month after the business closes. No chance I will be able to cover it post business bk and still pay rent and our car lease payment (my husband and I share a car - love public transport) and eat a little too! I need to get a job first since very soon my only source of income will be finished. Does anyone have any experience with renegotiating sales tax payments or even getting the amount owed decreased??
In general we are really needing a ray of hope, as we try to maintain the minimum amount needed to keep the business running so we can make the money to pay the lawyer....all the while hoping everything really will be ok.
Thanks in advance!
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