If anyone has any personal experience or advice - I would really appreciate it.

My situation is a tough one - I just closed my business a few months ago and it left me with about $45,000 in debt - all of it personally guaranteed. I have a rental property and about $80,000 in equity. Since I found out the business was closing, the property has been listed for sale(Since January). With the market the way it is, it hasn't sold yet, but we hope it does very soon allowing us to pay all of this off and move forward.

In the meantime - most of my creditors are working with me. The minimum payments on all of this debt was sustained by my business income, so our personal salaries are not able to cover this. The big problem is that one of my creditors served a summons to me today. I just don't know what to do.

They are in California, I am in Pennsylvania, the business was in Virginia - I do owe them the money, I don't disagree with that and I do plan on paying them in full. I have tried to communicate with them to try to give me more time, and they aren't bending at all.

My questions are:

1.) IN reply to the summons, should I write a letter to the court and note that I need more time to pay? Will this help at all?
2.) I can't afford a lawyer - I am in debt as it is, I can't go to the actual court hearing (IT is in California) - what do I do - is this going to be a huge problem if I am not there in person to defend myself?
3.) IF my other creditors start to follow suit and serve me summons as well - what do I do? The thought alone scares me because I don't want them to freeze my bank account, etc.. I know in the state of PA they can not garnish your paycheck, but they still may be able to freeze my bank account or attach liens to my property.
4.) With all of the lawyer fees and interest and late fees adding up - ultimately I may not be able to pay it all? Can I possibly file bankruptcy even if I have equity in my property?
5.) What is the time frame between the summons, the court date, the judgement and the possibility of them freezing our bank account? By the time this could possibly happen - my property may sell... I know I have 30 days to reply to the summons, so I am thinking I have at least 3 months before everything is final?
6.) I also have a small investment account that is held jointly with my sister. ONly $3,000 - but 95% of the money is hers. Is this in jeopardy at all? I could not stand the thought of them taking her money because of my problem.

ANy advice on what direction I should take?

Thanks so much.

You may file a petition to the court and explain that you have property in your possession woth that of the debt and it is for sale. The court may or may not order the collections companies to cease and desist for a certain amount of time . Have you considered going to a bank and trying to secude a loan using the property as collateral and get the money to pay off the debtors?? If you have a bank that you generally deal with, they could possibly work with you on this matter. Give it a shot. You have the money but it is tied up in an asset,, they may work with you... Good Luck

As far as a bankruptcy, the court would order you to sell the property OR even auction it off to pay the debts and surely you would lose in that situation.