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Business Debt/company filed chapter 11 and i am the personal guarantor
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Question
I live in Florida and my company had filed chapter 11 . and i am the personal guarantor on all credit cards. what can I do so it won't effect my personal credit or should I file chapter 7. Please advise.
Danielle:
Thank you for your inquiry. I regret that your business has been forced to reorganize. Please understand that I am not an attorney, and this is not intended to be legal advice. Rather without knowing the specifics of your situation it should serve as logical advice only. If you have filed for a Ch. 11 (Corp. Reorganization) I hope you have been advised of the costs and requirements pertaining to your filing. I don't know cost wise, what it is in FL. In CA, the mean cost is upwards of $60,000 to file Ch.11, so unless you owe substantially more, or a majority of your debt is secured or you/your company have significant assets to protect that doesn't seem the most cost effective means of resolving your debt. That said, your question is if you can protect your credit reporting from reflecting negative activity as a guarantor. Likely not, if a creditor chooses to report they do have the right to pursue guarantors for collection on these accounts. Most people I know that have filed a corporate BK, have to file personally as well to protect their personal assets (assuming they have any). Good credit and Bankruptcy hardly go hand in hand, so you can't have it both ways. Good credit is contingent on you keeping up with timely payments, lowering amounts you owe, etc. The good news is that if you can avoid filing even damaged credit can be repaired. Of course, you should always consult with your attorney for specific advice on your need to file personally. Your main concern should be the effective reorganization plan for your company and how you are going to be able to achieve repayment of your creditors which under your filing I believe will be at issue. My question is did you ever consider settlement on your accounts if your debts are unsecured? Through a business debt settlement program, you might have saved significant time and money and been able to avoid loosing control of your company to attorneys and trustees, while achieving the end goal. I wish you the best, and hope that if you found this answer helpful, you will provide a positive rating and feedback so others may benefit as well.
Respectfully,
Christine Janklow
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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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