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Bankruptcy Law/katrina bankruptcy

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Expert: - 10/9/2006


Question
hi mr. bayer, ive been reading alot of these postings trying to educate myself but bankruptcy law seems very complicated. my husband and i are in n.o. and went thru katrina. i lost my job, company still closed and my husbands company had 5 ft. of water. they are struggling but staying afloat so far. our income went from 80,000. to about 43,000. i have medical issues and was not able to work for up to a year at a time. i take pain medication, very exspensive , and have no insurance. we have about 25,000. cc debt most of which has been charged off. we are concerned about lawsuits, garnishment, liens, etc. we are also buying the biz my husband works for with 7 other people. the biz pays each owner the 950. to pay note to owner each month. there is 5 more yrs. left on this promissary note for this biz we are buying.  my question is, is this note we are paying to biz owner considered as part of the debt therefore we would have to stop paying her and that 950.00 would get devided amongst creditors? the only reason the biz gives us that money is to pay to her, it was set up as part of the purchase agreement. and also would the court allow me the money to buy my pain medication, we own our home and an old 1992 car. we really dont have any savings. we have already had to cash out 2 of our ira,s this year because of this mess and 2 major plumbing problems and ac breaking. we had no water for months because city pipes were broken and leaking from katrina, didnt find this out till after we paid plumber 2,500.00. anyway our credit was great before, we kept up with everything and now everything has gone to hell in a handbag! any advice is appreciated, thanks, bev

Answer
Please go see a local bankruptcy attorney expert right away. Your husband's interest in the business and the debt for purchasing the business, along with home ownership are just some of the reasons why this is too complicated to analyze via long distance. You need a live in-person consultation with an expert to receive adequate advice. Don't be shy about doing that.

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Los Angeles Bankruptcy Lawyer Leon D. Bayer

Expertise

Leon Bayer has successfully represented clients in bankruptcy for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues. If you or other readers want to keep up with my blog postings about life in and out of bankruptcy, you can follow my blog at http://www.bankruptcyblogger.org/ and my personal web site at http://www.debt-relief-bankruptcy.com and A Human Guide to Bankruptcy at http://www.thebankruptcyguide.net/ Leon also writes about bankruptcy law for Nolo, see http://www.nolo.com/law-authors/leon-bayer.html and his "Ask Leon" bankruptcy law blog column at http://blog.nolo.com/bankruptcy/

Experience

Leon is a Certified Specialist in Bankruptcy Law by the State Bar of California, and has been a practicing bankruptcy lawyer in Los Angeles, California for 33 years.

Organizations
National Association of Consumer Bankruptcy Lawyers, California Bar Association, Los Angeles County Bar Association.

Publications
Author, ?The Essentials Of Chapter 13,? Daily Journal Report, December 18, 1987.
Contributing Editor, Basic Bankruptcy, California Practice Handbook, Matthew Bender 1992, 1993.
CEB Consultant, CEB-Personal and Small Business Bankruptcy Practice in California, 2003.


Education/Credentials
B.A., J.D.

Awards and Honors
President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000

MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.

Past/Present Clients
I have probably handled something on the order of about 15,000 bankruptcy cases thropughout my career.

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