I loaned $90,000 to my father-in-law to-be for which he signed a promissiory note for paying interest on that loan. This was 4 years ago.
I set up an LLC for a different business, for which I got 2-3 buisness credit cards (since my credit score was, and still is excellent ~790).
In the meantime, my father-in-law to-be, not only did he stop paying interest 6mths into this deal, he further filed for (and was awarded) bankruptcy shortly thereafter. I was no part of the trustees or there were creditors that were owed first from the liquidation of his assets and his business. Essentially I got nothing from it, and most lawyers advised me that I will not get anything from him.
I have also been investing small amounts (in the order of $10K) (around 3-4 in total) in friend's businesses (domestic & overseas).
However, my own business didn't do so well, and has incurred signficant losses in 2-3 years of operation. Has racked up ~$75,000 in credit card debt.
Aside from a $40K Traditional IRA in a retirement account, I have no other personal or business assets.
The IRA should be protected but the more I read this the more certain it seems that these non-performing loans would have to be listed in your personal bankruptcy. have to decide after a consultation.
Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship.
Don't practice in NY, but an IRA is exempt in all 50 states under § 522(c) of the bankruptcy code and it also appears to be exempt under NY law. If the trustee can collect any money on the debt owed to you, then that asset does not appear to be exempt under NY law.
The best way to answer your question is to take advantage of a free initial consultation with an experienced bankruptcy attorney that handles chapter 7 and chapter 13 cases even if you think you need to file under chapter 7. Become educated on all the issues involved and related to your current economic situation, find out the advantages and disadvantages for filing under each chapter and use an attorney that can help you make the right decision for you. Most bankruptcy attorneys will meet with you at no charge for the initial appointment. You can use the Avvo "Find a Lawyer" link at the top of this page to search for an attorney.
Answers and comments provided are for general discussion only. My comments are not to be considered legal advice and they do not create an attorney-client relationship.
One more time?
IRAs are totally exempt from creditors in New York.
Answers are provided for direction only; it is not a substitute for an office consultation.
Individual retirement accounts, like most other qualified retirement investments, are exempt.
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