[erock10]

Due to medical reasons -- I may be staring filing for bankrutcy in the face. Does anyone have any information as too how to go about this and what kind of positive/negative ramifications this may have in the near and short term?

[jpomerenke]

Business or personal bankruptcy??

If its personal your credit will be shot. If its business and your business is actually a seperate enity (not Sole. Prop.) you just move on. Your business is shot but its better then your personal credit being shot.

[erock10]

Unfortunately - its personal. I have heard that filing for bankruptcy is better for your credit than just letting the debt accrue

[jpomerenke]

Originally posted by erock10
Unfortunately - its personal. I have heard that filing for bankruptcy is better for your credit than just letting the debt accrue

UMMMM NO! It takes YEARS to get back on your feet after a banruptcy... so everything in your power to not do bankruptcy.

[Onyx]

Sorry to hear of your ill health. If you don't think you'll be re-strarting your business real soon then bancruptcy may be an option, but generally you'd want to avoid it.

Without knowing your circumstances it's hard to know what to say, but why do you feel that you need to declare bancruptcy? Is there no oway someone else can run the business for you? Have you considered selling the business as a going concerm, even if it only covers the debts you have?

Here in the UL we have a thing called the Citizens Advice Bureau. Not sure what the equivalent thing is in the US, but you really need to take the advice a place like this can give.

Hope you manage to work things out.

[jpomerenke]

Its personal bankruptcy though...... not business.

[Dus10]

Honestly, you have a good chance at things working out fine after a bankruptcy. Obviously, most people do not fare well afterwards. I can say it with experience, as I was discharged less than a year ago, and I have a new 2400 square feet home being built right now. Obviously, it isn't easy to do, and that house wasn't as easy as my last house, but it is doable. The key is to have some nice things helping your credit afterwards, and to get all the things on the bankruptcy removed from your credit quickly (as they will linger as long as you let them). What helped me the most was actually debt. I reaffirmed a vehicle and paid it off in 4 months... about a year sooner than scheduled.... but the crown jewel was student loan debt. Student loan debt is quite interesting, especially when you are in deferment status... it appears as something that is being paid on time every month, even though it is just sitting there.

The key thing to remember is that bankruptcy is not something to be taken lightly. You should make certain that it is the best realistic scenario for you. If filing for bankruptcy means that you will have the opportunity to make thing better, by all means, do it. It you are not going to be much better off... you may want to reconsider. Call your creditors and tell them you are considering methods for reconsiling your debt and you would like to work out special payment arrangements. A lot of times they will look at what you have already paid to them, and see where they can break even (because they do not want you to file bankruptcy).

[mmerkau]

Bankruptcy used to be such a bad word. It can be devestating to your finances for a long long time. The loans that you get afterwards will be at a very high interest rate. But, hey if you can pay them off fairly quickly why not. Just be sure, because you won't be able to file again anytime soon :> Filing costs about $700-$800 and takes about three months. You will have to appear in court in front of a judge in a bankruptcy courtroom. Your lawyer will handle most everything though. There are different kinds of bankruptcy too, where you can keep certain assets.
Be well ~ MM