I HAD A BUSINESS THAT WENT SOUTH AND I USED CREDIT CARDS TO FUND THE BUSINESS. NOW THEY ARE COMING AFTER ME. CAN YOU HELP ME?
Unfortunately, many small businesses do not succeed and hardworking consumers incur a large amount of debt as a result of the failed business.
You have to be very careful with businesses since a lot of times people listen to commercials and incorporate and form LLC’s. However, finance companies are not just going to loan people money without a personal guarantee.
Many clients who refuse to give personal guarantees get money from credit cards which can result in interest payments of 30% if they don’t pay it back in time. Unfortunately many small businesses do not succeed which creates a major financial problem.
At TAIEBLAW, we see so many individuals who have tried their best for months but once crunch time comes, they cannot continue to make the hug credit card payments along with mortgage and car payments.
This is why Congress created the Bankruptcy Code. The whole purpose is to help honest people who, through no fault of their own, got into debt which they tried for months to pay back, but now just can’t’ make the payments anymore.
Depending on one’s particular circumstances, they can either file Chapter 7 and walk away and get a fresh start or file Chapter 13 to reorganize and/or protect non-exempt property.
The only problem with a Chapter 7 is that if there are non-exempt assets or improper transfers than a Chapter 7 trustee can pursue property which can get very involved. Too many people jump into Chapter 7 without looking at the whole picture and a “BAD” Chapter 7 can cause serious problems for our clients.
Therefore, even though the bankruptcy code is here to help honest people get a fresh start, make sure the right bankruptcy is filed.
Steven N. Taieb, Esq. has been a South Jersey Bankruptcy Attorney for over 33 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.