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Ratings. Guidance. The Right Lawyer.
What are the benefits of declaring bankruptcy versus "riding out" your circumstances via the statute of limitations or settling?
Dallas, TX
Viewed 45 times.
Posted 6 months ago in Bankruptcy / Debt
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I was previously a partner of an LLC. We were impacted, like many, by a tough economy, and decided it was best to close the business. I was the personal guarantor for 3 credit accounts, and am now left with the debt, which I cannot pay. The bank's settlement proposal is also unrealistic for my income.
In addition to these accounts, I along with my 2 other partners, were guarantors for our contract to lease the business space. They have chosen to file a civil suit against each of us. My only asset is a 401k, which is currently not worth much. Since I have no major assets, would a bankruptcy really be to my benefit? Answers (1)
Robert W. Kovacs Jr.
This attorney is licensed in Massachusetts.
Posted 6 months ago.
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Yes, I think bankruptcy would help you and you should contact a bankruptcy attorney in your area. If you need a referral go to www.nacba.org.
I have found in my practice that individuals can do just as good of a job negotiating with their creditors, as can a debt consolidation company. It seems as though you have gone through this and still the payment is too high for your income. As for your assets, most consumers are able to keep all of their assets. This includes their home, car, and 401(k). Qualified retirement accounts are completely exempt under the federal code. There are finical eligibilities for filing a chapter 7 case. If you do not qualify you will likely be able to file a chapter 13 case in which you will pay back an affordable amount based on your income not based on what the credit card company tells you. Good luck. Robert Kovacs |
