Expert: Barnette Law Offices, LLC - 11/4/2008

Question
QUESTION: I have a business that is in delima because of this economic situation that our country is going through.I have almost 150k in credit cards debt that I had to borrow to keep the business running as well as paying payrolls. Now the business is fixing to close. I have no way to pay this credit cards debt. What is my options. Do I file bankruptcy and if I do, how that will help me. Or do I just ignore the credit cards companies and if so what these companies can do to me legally. Can they put me in trouble with the law or what else.

Thank you for help

ANSWER: Frank:

   Bankruptcy is probably your best and only option if you're eligible.  If you don't seek protection, your creditors can and likely will sue you which could lead to attachment, liens and garnishments.  Filing for protection will eliminate these possibilities in most respects and contrary to popular belief, actually be more beneficial for your credit score than simply letting them go by the wayside.

         Jason Barnette
         Barnette Law Offices, LLC
         http://www.barnettelawoffices.com
         615-585-3885

---------- FOLLOW-UP ----------

QUESTION: How I become eligible to file bankruptcy. Right now my business is closed so no income is coming.I also have a school loan. Can I choose you to file for me the bankruptcy process. How long will it take and how much do I need to pay. Can out of state lawyer file it. I am in Georgia.

Thank you

Answer
Frank:

  Unfortunately, no, I cannot file your petition for you insofar as I am not licensed in Georgia.  You would need an attorney licensed there to do it.

  Bankruptcy eligibility in terms of Chapter 7 is determined by income and it varies by the size of your family and state.  You would need to consult with an attorney near you in order to see if you can seek Chapter 7 protection.

         Jason Barnette, Esq.
         Barnette Law Offices, LLC
         http://www.barnettelawoffices.com
         615-585-3885