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I, over the past 5-6 years or so, have started 3 work from home businesses. Personalized cartoons, personalized name gifts and personalized greeting cards/invitations. All required start up costs and all that stuff, advertising, web sites, supplies. All have been abandoned. I am now a self employed nail technician. That also required quite a bit of start up costs, besides the education. I have $34000 in CC debt. I am current on my payments, but business is very slow. I am looking at settlement, I think. No one will help or offer help because I am current.
But I want to know how bankruptcy works for small business people? One of the CC's is in my nail business name and the other 3 are in my personal name.
Thanks for your help




Were all of these businesses sole proprietoreships?

My husband and I recently filed Chapter 7 in our personal names. However, the filing also listed any DBAs that we had operated under in the past x (I don't remember exactly) years. My husband is self employed as a contractor. He had one credit card in a business name and a line of credit (unsecured) in a business name (sole proprietor). According to our attorney, both of those debts are eligible for dscharge in our BK and the creditors will not be able to attempt to collect from us personally or from the business (even though my husband does still do business under that name).

If you wanted to file under the business names rather than your personal name, I'm not sure how that would work. I did read someplace recently (don't remember where, just one of the sites I came across while researching BK) that if your expenses are mostly business expenses, then you don't have to pass the means test. I'm not sure how that works.

Sub: #1 posted on Mon, 08/11/2008 - 01:33

alias1958 alias1958

(Posts: 1230 | Credits: 79.88)

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