- the debt was due to a failed commercial property. After fore closure, we still owed about 1Million of deficency.
- We are making about 200K per year.
- Will Chapter 7 (business) only liquidate our asstes? or do we still have to make payment as filing chapter 11 or chapter 13 due to our hugh income?
Thanks for your advice,
One thing the prior answers overlook is that a "business debtor" can often qualify for Chapter 7 relief even if they earn too much to be a "consumer debtor." If the deficiency is your primary obligation, and it totals more than half of your total debt, you could qualify to be a "business debtor" and you can use a Chapter 7 case to liquidate your remaining non-exempt assets and receive a discharge. In that case, you would not have to make payments of your future earnings.
I would urge you to seek the help of a qualified bankruptcy lawyer before you make a decision about how to proceed. Good luck to you!
I am aware that you posed this question in order to obtain an answer, but it would be remiss on my part not to tell you that the first thing you should do is contact a local, experienced bankruptcy attorney.
With income of $200,000.00/year, the odds are that you will not qualify for Chapter 7. Whether you can qualify for Chapter 13 ( there are debt limits ) or need to file a Chapter 11, will require a complete, financial interview with an attorney. Your attorney, in order to advise you properly, needs to review your current income, current expenses, income over the past 6 months, who the creditors are and the value of your assets.....among other things!!
Thank you for contacting Avvo.
Please be advised that the advice to you herein does NOT establish an attorney client relationship and that our firm does NOT represent you in any 7 Bankruptcy matter.
Some more facts are needed - do you want to try to keep running the business or are you ready to close it down? And how is your business set up - are you incorporated? You should consult with a qualified bankruptcy attorney to review your case.
I'm sorry your going through this. Your description of your challenges raises a lot of questions. I think it is almost impossible to give you a good answers without talking about a lot of variables.
You need to consult with a bankruptcy attorney. You can contact me at 425-775-9700.
Feel free to contact me this week to discuss.