Anybody know anything about bankruptcy? I had a business that failed, and they repo'd a $$$ machine. They finally got around to getting a judgement against me, and now they're starting to turn up the heat. I'm gonna make a lowball offer to settle the judgement, then it's off to a bankruptcy attorney. I have no assets really, and in Florida they can't take your house, so they won't get much. Any advice on what to expect along the way?

 

Only advice I can think of is:
1. Hire a good attorney,
2. Don't telegraph you intentions across an open public forum accessible to millions of people.

 

I had a failed biz, too, but I haven't gone the bankruptcy route.

I have actually started catching up on most everything I had saddled on me when I closed down, so other than an occasional phone call I am not usually home to answer (I work offshore now), I just get a rare notice to get started on paying a leftover bill or ten.

Make a payment agreemnt over time to settle that contract for that machine or lowball them. They want anything they can get in terms of cash.

Bankruptcy isn't cheap and you will likely get Chapter 13, which is repaying over time, paying for the attorney, and still getting a black mark on credit for 10 years! NOT A GOOD DEAL, if you ask me...hell, I'll tell you it ain't a good deal for you!

I will just ride my situation out. Should be back on track by the end of this year. Then get back out into the world and back on land, to boot.

Google for "bankruptcy"....Google tells all you need to ever know about anything.

 

If they have a judgement against you, that's all they have. A judgement. If you can't pay it, and you seriously think you need to file for bankruptcy relief, do not offer them anything. Talk to a lawyer and take their advice. If you decide to retain an attorney, once you advise the creditors of that fact, they cannot contact you any longer. They must deal with your attorney.

How long has it been since you've paid them anything? Chances are if its over 4 years ago, it is no longer enforceable. There are statutes of limitations on debt collection, however making a payment resets the statute time. That is one reason the collectors desperately try to get anything they can out of you.

 

ask Trump. He seems to go bankrupt every few years

 

Careful there- the SOL applies to the debt itself, not judgements. They can go for decades, depending on the state. The other problem is normal consumer protection laws don't apply to business defaults. Each state treats business failures differently- his personal assets may or may not be sheltered. It's time to talk to a lawyer and see what can be salvaged, IMO.

 

I filed bankruptcy about 15 years ago, but mine was a relatively simple deal. My cousin embezzled 75 grand from the family business and I had to turn my '88 Mustang GT convert. in for voluntary reposession. It was low mileage and in perfect condition, the person I dealt with at a credit corporation that shall remain nameless told me that they would be able to sell the car for what I owed and I would be free and clear. They wholesaled it and came back on me for the difference, about 5 grand. I told them that if I had 5 grand I would have kept the car, this was not what they had said they were going to do when I made the arrangements to turn the car in in the first place. At this point I had left the family business and was living in an apartment, I had no house and not much else in the way of assets, so I wound up filing bankruptcy as the creditors would not leave me alone. It was an unusual situation the lawyer told me, but she went ahead with it. (The creditors called me, even after I informed them that I had filed...that was a no-no!) The whole deal wound up costing me about 500 bucks. Black mark on my credit? No BFD, I already had the repo on there. I have never purchased anything on credit since then. -TD

 

> Any advice on what to expect along the way?

Seven to ten years of bad luck. I would avoid it at all costs if possible. It will effect everything, including having to leave deposits to have your water or gas turned on. Some utilities can refuse to do business with you and you can end up having to pick the higher priced choice.

I really think you have to talk to a lawyer, one not motivated solely to file a Ch7 just to collect his fee.

 

I seconded what was said above