We completed the post filing (sometimes called pre discharge) debtor education course tonight. And just in the nick of time. You are required to have this completed 45 days after your 341 meetings. Depending on how you count today is 44 or 45. PACER shows 45 days. I hope this isn’t a problem. My lawyer will submit it in the AM.
Posts Tagged ‘bankrupt’
Completed Pre discharge education course
Thursday, January 8th, 2009Lots of documents for the trustee
Thursday, October 30th, 2008Boy… She wants a lot of documentation. 14 months of bank statements, ALL checks written from all business and personal accounts, documentation where money was spent on a business loan from last year, two years tax returns, and more.
This is going to be a PILE of documents. There are over 400 checks alone, plus most of my business checking account statements are 15-20 pages each! (there are multiple business accounts, too)
I suppose this is her job. She is looking for things like illegal transfer of assets, preferential treatment, etc. Which is not a big deal for us… we didn’t do anything like this. But I suppose there are poeple who try to cheat the system, and trustee’s like her will find them! She needs all this by Novemver 14th. So at least I have a little time to get copies of the checks from the bank.
Closing the business will it need to file bankruptcy
Monday, October 20th, 2008Today I decided I would need to close the business. My month to date sales are down about 90% from last year. I am barely bringing in enough money to pay the electric bill, let alone any other bills. This is tough. I’ve been in this business for 17 years, and had the store for 3 years now, but the economy has changed, and my business is a sport for people. Not needed, good sales when there is extra income… with high gas prices and a bad economy, no one is even coming in the doors.
Not only that, but if I stay in the building I will still be responsible for my rent. Since I included my business landlord in the bankruptcy if I am out of the building the same month as filing I am only responsible for rent prior to filing.
One more thing to worry about. Ugh.
chapter 13 versus chapter 7 bankruptcy
Friday, August 8th, 2008So… What is the difference in a chapter 13 or a chapter 7 bankruptcy? There are a lot of great sites on the web that can go into much more detail than I will here. But you will get the basics.
To start, there are some great books available to learn all about bankruptcy. Make sure you always get the latest version available. First you can check out Bankruptcy: Is It the Right Solution to Your Debt Problems?
Basically a Chapter 13 bankruptcy is a court approved payment plan which normally lasts 36 -60 months based on your disposable income. How much gets repaid to your creditors is dependant on a number of issues. It can be as little as 10% of your debt, or as much as 100%. A good resource for this information is the Nolo Press book Chapter 13 Bankruptcy: Keep Your Property & Repay Debts Over Time.
A chapter 7 bankruptcy is a liquidation. You are allowed certain exemptions, either federal or by state which you can keep. Anything else is to be sold or liquidated and repayed to the creditors. In 2005 the government changed the bankruptcy laws making it harder to file for chapter 7. You must now pass what is called the “means test” to qualify and be able to file this way. A great resource for this is also a Nolo Press book: How to File for Chapter 7 Bankruptcy.
Although some of the above referenced books are for people who want to go it on their own. (This is called a “Pro Se” Filing) I recommend a lawyer!
First Bankruptcy lawyer consultation
Monday, August 4th, 2008Well, today we had our first consultation. I am trying to determine whether I have to do a business bankruptcy, or personal bankruptcy. Virtually all our debt is due to the business. It is unclear whether the business can keep operation or will need to close.
After the consultation, we determined we didn’t like the feel of this particular lawer, or firm. It appeared to be a wham-bam thank you ma’am type approach. He stated we would need to do a chapter 13 bankruptcy. (I’ll cover the different types in a future post) A chapter 13 is a repayment plan through the bankruptcy court. How much is repaid and how long of a period of time is determined by the court based on your disposable income.
He said basically the business would just have to close down and be liquidated. So now we wait for the other appointment.