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  1. #1
    Join Date
    Dec 2008
    Posts
    4

    Default Bankruptcy

    My question involves bankruptcy in the state of: Arizona

    I am deep in debt. The debt I accrued was not excessive given my previous occupation nor the direction my future was heading.

    4 years ago I owned a business for about 16 years. I made roughly $75-150K per year. I sold the business, and moved to another state to undergo training for a new career - I guess a mid life crisis. It was lengthy training and I was in the final stages when a disaster hit involving family having a stroke, needing care - its a long convoluted story but anyway - I needed to resign from the training right near the end. As a result the training I was underwent is of no use to me, and due to a non-compete clause with the business I sold, I have not returned to my former occupation. So anyway I resigned from training and returned to the state I owned the business 6 months ago

    So I found a job, it is day to day - not steady work. I have averaged a meager $1300 a month.

    I did not reign in expenses during my training - I was used to the decent salary I made 16 years prior and the training I was getting when completed would have allowed me a similar income (or more), plus I made decent salary while doing the training (~$53K)

    Up until the last 4 months I had never missed a payment on anything and had a great credit score. Now I have missed 4 consecutive mortgage payments on my old house and 4 months of credit card payments. Last spring I made some large purchases on the credit cards (like $25K) - manageable based on the past 20 years - but now completely unmanageable.

    I am not sure what to so. I get 20 or 30 calls from creditors each day. I am barely covering some basic rent and food for me and my family.

    I want to break my non-compete clause (1 year left) and make some money. The job market is tough.

    I don't even have the money for a bankruptcy attorney and not sure if I should consider that.

    I guess I should formulate a question .... ok... any advice on what to do? Sorry this is so poorly organized.

  2. #2
    Join Date
    Dec 2007
    Location
    Ohio
    Posts
    2,006

    Default Re: Banruptcy

    You need to consult with a bankruptcy attorney. Most are free. With your income now, you should qualify for a Ch 7. I don't see how your going to get around NOT filing with the debt that you have explained. Ch 7 is for people like you who need a fresh start. Good luck.

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Bankruptcy

    Agree, based on what you posted, it seems a bankruptcy might be your only/best option. You should qualify for a Chapter 7 but you need to talk to a bk attorney. Usually the initial consultation is free.

  4. #4
    Join Date
    Dec 2008
    Posts
    11

    Default Re: Bankruptcy

    We were self employed, things went bad and are now in Chapter 7. I suggest you talk to a few different attorneys. In Atlanta I ran across some cookie cutter firms, that were just about turning clients over.


    I also suggest you talk to an employment lawyer about your non-compete. Some states are right to work states and if the non-compete is excessive, the court may find it invalid. Having employees and having to deal with violations of these clauses, I also found the damage was not enough to warrant action. If you go after the customers you sold thats one thing but if you can find new clients, then so be it.

  5. #5
    Join Date
    Dec 2008
    Posts
    4

    Default Re: Bankruptcy

    Thanks. We have considerable debt in credit cards. They call constantly and after having told them so many times that there is nothing I can do, I just ignore their calls.

    What can they actually do, since its unsecured debt? It will be a few days since I can start calling bankruptcy attorneys, - should I talk to them and take their calls? They want me to send a post dated check for $2000 or something but I am not sure what a post dated check that is worthless would do?

  6. #6
    Join Date
    Dec 2008
    Posts
    4

    Default Re: Bankruptcy

    Merry Christmas by the way and thank you for your replies

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