Chapter 7 filing

[ati123]

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

My husband and I own a scientific research firm and due to the recession and the lack of profit, we have decided to terminate the business. However, we have debts such as a lease on equipment and two business lines of credit that we can no longer afford to pay. Should we file Chapter 7 bankruptcy?

Thank you.

 

[bigun]

Nobody can advise you on a bk filing based on the few sentences in this post.
We have no idea about your income, family size, assets you may own that have equity beyond what the state of Ga. allows or, the amount of debt you wish to discharge.
Did you personally guarantee the lease and the lines of credit?

Most bk lawyers give a free or lowcost initial consultation. Speak with a few and get all of your options explained.

 

[gogo589]

Are you 250K in debt?

 

[diy4law]

If the business is not a corporation and a sole proprietorship, the creditors could come after you personally to complete the leases and pay for the debts. Most the time it's best to file bankruptcy and wipe out all liability to you in the future. Closing it down doesn't necessarily mean that they'll forget about you. These debts are many times sold to collection agencies and they're pretty ruthless trying to collect on these debts.