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We Are Deep in Credit Card Debt From Our Own Business. – Kimberly


“Dear Steve,

My husband and I own a business. We have gotten into debt of 130,000 mostly credit card debt. This was from trying to keep the business open during lean times. We need to keep the business, it’s all we know.

Bankruptcy (chapter 13) is all we can do and keep the business is what the attorney has told us. We haven’t made payments to the credit cards in about 15 months and now I have to go to court for a pre trial tomorrow with Capital One.

We can only afford to repay about $300-400 per month. The attorney said that they will determine the amount we repay based on the value of the business. This is another issue, we have no real idea what the business is worth. Do we just take our inventory, find out a reasonable value and submit that to the trustee?

Do they want to see a “good faith amount” added in to the value of the business too? We don’t own the building, just a handful of things in the building.

We need to move pretty quickly, this has just been the most difficult time of our lives.

After bankruptcy, will we be able to buy a used car or do we have to go to the court for that? Can they take our refund checks from the tax return? Can they take future earnings from an inheritance?

Thank you so much!



Dear Kimberly,

I can certainly hear the fear in your writing. You are scared and afraid from the uncertainty of a situation you have never experienced before. And while this is all coming to a head right now, this has been brewing for a long time.

Since you have any attorney, all your questions can be best answered by your bankruptcy attorney.

But I think what you should fear most is not taking some action you control to finally and forever put this situation behind you. You won’t be able to even begin to have hopes and plans for a fresh start until you follow the advice of your bankruptcy attorney. Lean on them. A good bankruptcy attorney is a legal technician and a compassionate friend.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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