Whether or not he qualifies for Chapter 7 depends in no small part upon his income. If he qualifies for Chapter 7 under the current means test, I suspect that your lawyer is correct to recommend it.Quoting BStone1
If he's the guarantor, it will be the business assets and his non-exempt personal assets that are subject to being liquidated. If you do not join the bankruptcy, your assets (including your share of the marital estate) should be safe.Quoting BStone1
[quote=BStone1]Basically, they're telling us to keep operating until we can sell. (We're maxing out our credit w/vendors so the bank wants us to finance more to pay vendors off so we can stay in business until the store sells).[quote=BStone1]
If there's a chance of selling, it's great to try to sell. If not, don't dig yourself into an even deeper hole. (It's called "throwing good money after bad.")
Your bank is recommending a plan that will maximize how much it receives and, ideally, have you refinance with another lender so that your bankruptcy will no longer affect them. That's in their best interest, but it does not appear to be in yours. Also, right now the debt seems to be largely that of the business and your husband. The bank's plan would appear to shift that to you and your husband, and will probably eventually force you into the bankruptcy as well - something you may presently be able to avoid.Quoting BStone1
Your husband will file an inventory of his assets with the court, and the trustee will consider whether to pursue certain items of property. Discuss this with the bankruptcy lawyer, as it's not as scary as you think, and you (if you're not a party to the bankruptcy) may even be able to purchase your husband's share of certain property if you have the (separate) resources to do so.Quoting BStone1
For Chapter 7, wait until after the final discharge or work closely with your bankruptcy lawyer. For Chapter 13, it depends upon how soon the house is sold after you start the repayment plan, and what you do with the money (e.g., buy another house, or bank it) - again, talk to your lawyer.Quoting BStone1
Agreed.
You have an exemption up to the dollar amount(s) specified for your state. I don't think you followed the instruction to identify your state, so I can't say further.
It's not like they're left "high and dry" in bankruptcy - they can make a claim against business assets and your husband's non-exempt assets. Will they get more if you hang on, sell the business, etc.? Probably. But I'm not sure what there is to negotiate, unless they start offering you the opportunity to settle your debts at a discount (e.g., 50 cents on the dollar).Quoting BStone1
Right. By his filing, you could largely insulate your credit from the effects of the bankruptcy.Quoting BStone1

