Ask Experts Questions for FREE Help !
Ask
    GeorgeC3223's Avatar
    GeorgeC3223 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jan 7, 2011, 12:42 PM
    Is bankruptcy allowed on private loans?
    I owe money on a bad business venture that I saw a lawyer for and was informed I should be absoloved of the debt. I have been out of work for almost a year and have had trouble landing a position that pays well enough to cover my rent and expenses. Recently, I have gone into default with my student loans. They are threatening seizing of assets and future wage garnishment. Would I be able to include my private loans in this bankruptcy filing under the right circumstances? Thank you for your time.
    smoothy's Avatar
    smoothy Posts: 25,490, Reputation: 2853
    Uber Member
    		  
    #2

    Jan 7, 2011, 01:35 PM

    THat depends... exactly how is this buiness set up, Is it incorporated? As in did you form an LLC? If you did't set it up in a manner that separates business from private assets and liabilities you are screwed.
    GeorgeC3223's Avatar
    GeorgeC3223 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jan 15, 2011, 07:29 PM
    The business wasn't a LLC or anything. I only worked it for a year so never got it licensed. I spoke with a bankruptcy attorney about that debt and should be able to be absolved of it. The entity that is going take money from future pay checks is collections for default private loans. If I can show undue hardship is it possible to lower or remove private loan balance as well. I couldn't afford 150 a month and hear that now legally 25% can be garnished each week which will be around a 1000 a month out of a full time salary before the government loan payments.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #4

    Jan 15, 2011, 07:55 PM

    There are many ( and I mean many) requirements to even be allowed to file bankruptcy, one will be a debt to income ratio, you will need to see if you can meet that.

    After that you can include all of your personal debts and personal business debts ( but your government student loans in the US can not be incluced) plus most taxes can not be included either.

    Now when you file, the other side ( the actual lender not the collection agency) can object to the filing, and there could be a hearing on it, but that is what your attorney does
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How much is the government allowed to garnish social security for student loans [ 1 Answers ]

I am retired and have Social Security, a small federal pension, and small state retirement. I owe for back taxes and student loans. I've heard that the government can levy 15% on my Social Security for back taxes and an amount for student loans. How much more than 15% can they levy and on which of...

How much is the government allowed to garnish social security for student loans [ 1 Answers ]

I am retired and have Social Security, a small fed gov pension, and state retirement. I owe back taxes and student loans. What percent of my income can the government levy.

How does my bankruptcy affect personal loans from private lenders? [ 3 Answers ]

We have experienced financial devastation in the last year, and after consulting a debt counselor and a bankruptcy attorney, it has become clear that our only option is bankruptcy. We are now in the process with the attorney of determining which chapter is the best option for us. In the...

Private Student Loans [ 12 Answers ]

I have about 105,000 in private student loan debt. With my payments starting to be the full amount, I'm not sure what I can do. Does the new bankruptcy laws protect the private student loan debt from being discharged even though they aren't federal loans? Thanks for any help. Any suggestions...

View more questions Search