Business and Personal Chapter 7

[iamachef]

What is the name of your state (only U.S. law)? wv

I own a small cafe that started a year and half ago as a single member LLC. I changed it about 8 months ago to an S-corp with me as the only owner and officer.

Due to the economy and a near divorce (cost me thousands) I am now financially broke. I literally don't have two nickles to rub together. I rent the building, dont own a Home (rent), have a car valued at about 2k and literally have no assets.

My lease is up at the end if june and I am closing the business. All the money aI had I have used to pay final bills for the business (phone, lights, rent etc.)

I have about 10k- 12k in debt to the business (suppliers) and I have personal debt in credit cards of about 12k- all cards were obtained to start the business but are in my name personally. All cards were obtained in the last year and half to help run the business but were obtained personally in my name.

I am now unemployed and looking for work. I have ZERO income and do not know how I will afford an attorney for bankruptcy.

My question is this: Do i need to file chapter 7 twice for my personal debt and my business debt or can it all be included in one filing due to the fact that it was my business and my only means of income personally and I was the only owner and officer.

Thank you

 

[randolph76]

If your personal debt is used for your business then it should be able to be filed under the business bankruptcy. You really should have a lawyer to help you parse this though. Typically, those filing chapter 7 stop paying bills that will covered under the bankruptcy to cover lawyer fees.

 

[bigun]

You should be able to include all of that debt in a Chapter 7 filing. Just schedule anyone who could conceivably have a claim.
Most bk lawyers will give a free of lowcost initial consultation. Speak with a couple and see what they suggest.
I'd not be in any real hurry to file bk. You have nothing anyone can take. Concentrate on finding a job with health care benfits and getting your finances stable. You don't want to file too soon and 6 months later get sick and have hopsital bills you can't bk. Bk will always be an option. File when it'll do you the most good.