Can I File a Chapter 11 Bankruptcy if I Closed Business 3 Years Ago

**DLynn** · 06-11-2011, 04:46 PM

My question involves bankruptcy in the state of: Ca.

I have a notice of default on my home. My husband and I were sole propreitors of a business for 14 years and closed 3 years ago. Most of our debt (and loss) was because we had to close. Can I still file a Ch.11 and if so, would I be able to stay in my home without having to make all the payments in 60 monthes? The home loan was a loan to help our business, and it was a balloon payment that became due in March 2011.

**Mr. Knowitall** · 06-13-2011, 05:44 AM

Do you mean Chapter 13? I'm not seeing a huge advantage in trying a Chapter 11 here, given the increased complexity and expense, if the business has been defunct for three years and the only remaining issue is your personal guarantee of its debt.

**DLynn** · 06-14-2011, 02:15 PM

Quoting Mr. Knowitall

Do you mean Chapter 13? I'm not seeing a huge advantage in trying a Chapter 11 here, given the increased complexity and expense, if the business has been defunct for three years and the only remaining issue is your personal guarantee of its debt.

The only advantage would be if a ch. 11 bankruptcy would allow different treatment concerning a home balloon payment that became due in March and is now in default.
My understanding is that a CH. 13 would require all the payment of the balloon in 60 months ( $177,000 and not realistic) whereas a CH. 11 might provide something different. I can file a 7 and have to sell the house, which may ultimately be what I have to do but I am exploring options. I want to have some general understanding before I talk to a lawyer.