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Business Debt/How does personal bankrupcy affect my small business?
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Question
Christine,
I, like some,I was fortunate to buy a house in the early 90's and was able to triple my value in 10 years.
I took that equity and bought a rental duplex and did good and did it again about 2 years ago on a larger fixerupper.
At the time I had spread my equity over three homes but still felt good, that I was investing in the future and actually thought I was building my retirement. All three homes have had massive home improvements done as well with equity loans.
Now I find myself with all three homes upside down to the tune of approx $550k.
With new laws being put in place to help people that are in foreclosure, the government seems to have forgotten about us the have borrowed from friends and credit cards to ensure we do not foreclose.
Now I am in the position where it would seem bankrusptcy is a no brainer. But, I have a small business that does make a small profit.
If I go with the personal bankruptcy will my California LLC be at risk?
I thank-you for your advice in advance.,
Kevin
Kevin:
Thank you for your question. I am not an attorney and can not advise you on legal matters. However, based on my peripheral knowledge about bankruptcy, I have seen people in similar situations as the one you have described, be rejected due to income from a business and assets personally. Depending upon your debt situation and your ability to service it, you may have alternatives. For instance if you are struggling to pay mortgages you may be eligible for loan modification, short sale or deed in lieu. If you owe a lot on unsecured debt, you may be eligible for debt settlement. These are just a couple of options that can address independent issues but work toward the goal of reducing debt. If you do not already have an attorney, you should seek the advice of one who is familiar with bankruptcy. You can visit www.findlaw.com to help locate someone in your area. If you can't locate a good loan modification specialist, I have access to several who are in CA and may be able to evaluate and assist you. You can always ask a follow up question for more details. I hope this helps.
Respectfully,
Christine Ankle
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Answers by Expert:
Christine Janklow
Expertise
As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.
Experience
My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.
Organizations
Provisors;Turnaround Management Association; Los Angeles area
Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."
Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising
Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.
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