please help!!!!!!!!!

iVillage Member
Registered: 04-08-2003
please help!!!!!!!!!
1
Tue, 04-08-2003 - 9:55pm
I have some questions. We are about 2 months away from filing Ch 7. We have about 50k in CC & unsecured debt we are filing on. We're keeping the house, 2nd & 3rd mortgages. My husband is a 50/50 owner in an electrical contracting company. They ARE incorporated. Have only been in business for 2 years. Their Articles of Incorporation value their stock at $1.00. They don;t really have any assets. Some tools, maybe $1,000. worth and a van that is maybe $2,500-3,000. I read a post awhile back that stated that they (BK court) wiped out their checking account for their business & personal.

1.) Can they do this.?

My attorney told me that since the company is new and still showing a loss on their taxes that they should leave his business account alone. He generally has about 20k in that account but he has payroll and accounts payable every week. I'm terrified that our creditors will try to go after any monies in his account. Even if he has 20k in there, he has 3k in payroll expenses per week, insurance, company vehicle payment, material expenses and so on to pay each month. He also has a partner that is a 50% shareholder. It will be awful if his partner is penalized for our money problems.

2.)Can someone please advise me on how to handle this situation.?

WE ARE ONY FILING ON OUR PERSONAL DEBT.

3.) Should we only keep the amount needed for monthly expenses in this account?

Also, his business bank is the same bank we have our personal checking account with. We are also filing on a 5k credit card with this same bank.

4.) I know some have advised to changes banks but will filing on the 5k cc also affect his business checking account?

Sorry to rattle on but it's getting closer to the time we will file and I'm a little freaked out. Okay, so I'm alot freaked out! I need LOTS of help so anyone with knowledge in this area, please respond. The more advice the better!!!!

Thanks for your help!!!


iVillage Member
Registered: 02-14-2003
Wed, 04-09-2003 - 10:13am
Hi adodrill. Welcome! Please post your bankruptcy questions on our Bankruptcy Q&A board.

http://messageboards.ivillage.com/iv-mlbankruptcy

If you have questions about repaying your debt, our Debt Q&A board is the best place for that.

http://messageboards.ivillage.com/iv-mldebtqa

Please keep posting here at Debt Support Group for emotional support while you repay your obligations. :o)

CM Ms Joe Cool

Senior Community Moderator

moneylifecm@mail.ivillage.com

Ms Joe
CM Ms Joe Cool
Senior Community Moderator
moneylifecm@mail