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Ratings. Guidance. The Right Lawyer.
I'm 36K in credit card debt, self employed, 2009 income around 18K (recession!) Is Bankruptcy my best option, am I qualified?
San Francisco, CA
Viewed 251 times.
Posted 3 months ago in Bankruptcy / Debt
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I took out lines of credit to help fund my blossoming Fine ART business (over the last few years) but have been hit hard by the recession and have not had the usual return for the work I've done.
My net profit in 2008 was 25K this year if I'm lucky it might be around 18K. I'm having a hard time keeping up with minimum credit card payments, trying to decide do I pay my estimated taxes, rent, groceries and stop making credit card payments so I can keep a roof over my head longer? (and avoid IRS penalties) I'm overwhelmed and can't imagine by what miracle I will be able to pay off this debt in these economic times. I own my car, rent my apartment and studio space where I work. I have a small emergency fund (around 5k) and a collection of fine art worth 70K as my only assets. Answers (3)
Jeffrey Daniel Larkin
This attorney is licensed in California.
Posted 3 months ago.
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Sounds like you qualify for chapter 7 but not without losing assets. If you have $70k worth of fine art the trustee will try to liquidate the non-exempt portion (approx. $50k) for the benefit of your creditors.
Mr. Larkin is licensed to practice law in CA and is located in San Diego. His response here does not constitute legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Larkin strongly advises the questioner to confer with an attorney in their own state to acquire more information about the specifics of their case. 
Matthew Edward Williamson
This attorney is licensed in California.
Posted 3 months ago.
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I agree with Attorney Larkin and would add a few things. If you absolutely don't want to get rid of the collection, then you'll probably have to do a Chapter 13 - but I seldom recommend that.
The big two questions are: How much debt do you actually have? and I know you are not going to like to ask yourself this, but having been an adviser to many of the Carmel area art businesses over the years - is it worth continuing to pursue in this current economy? Or can you restructure the business somehow to make it significantly profitable? If you have any other questions, feel free to give me a call, I'm in your jurisdiction and have work with many art businesses as an advisor over the years. You're in my jurisdiction (Northern District of California). Good luck with your situation and remember the above is general information and not advice. Matthew Williamson 
Jamie Polon Esq.
This attorney is licensed in Dist. of Columbia and 2 other states.
Posted 3 months ago.
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With regards to your assets, they can be liquidated to pay off your credit card debts and if you resolve all your matter you will also be protecting your FICO/ credit report.
Bankruptcy is a last resort when you have the ability to turn assets (your $70K art collection) into cash to resovle unsecured debt in full. You want to avoid litigation by creditors at all costs and make good on your oustandging obligations by paying to $0.00 Create a budget, liquidate and pay in full your unsecured debt.. Avoiding litigation by creditors is priority No. 1 for you. When your finances are back in order your can rebuild your art collection. |
