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09-28-2015, 04:38 PM #1
- Join Date
- Nov 2014
- Posts
- 76
Personal Chapter 11 Bankruptcy but business financials look strong
I am working with a business owner here that owns 2 separate businesses...one is an auto body shop (in business 32 years) and another is farm equipment (owned five years)...
Both look good from a numbers perspective:
auto body business in August: $175k deposits and $50k avg bal...55 deposits
farm equip business in Aug: $125k in deposits and $55k avg bal and over 10 deposits.
Here's the "But"....Owner filed chapter 11 about 5 months ago...The chapter 11 is a personal bankruptcy (not filed on businesses)
Are there any funding companies that could fund this given the Chapter 11 BK?
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09-28-2015, 04:47 PM #2
- Join Date
- Aug 2015
- Posts
- 22
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09-28-2015, 09:52 PM #3
- Join Date
- Sep 2015
- Posts
- 20
I will be able to help e mail sbatchelor@umsfunds.com
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09-29-2015, 10:07 AM #4
- Join Date
- Mar 2014
- Location
- Ann Arbor, Michigan
- Posts
- 1,289
personal BK
Generally individuals don't file chapter 11 unless there is a business involved. It's more likely chapter 7. Do you know the amount of the BK or what the status is?
You might ask your client to pull a soft 3 bureau credit report.
We're interested.
Bob Shaw
734.929.3800
rshaw@advancecredit.com
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09-29-2015, 10:18 AM #5
- Join Date
- May 2015
- Location
- NC
- Posts
- 208
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09-29-2015, 10:40 AM #6
well CH.11 is very expensive compared to CH. 13 they are similar in that they consolidate your payments and give you time to settle debts. The Ch.11 allows more flexibility (anyone can apply minimal requirements) and a longer period of working out payments anywhere from 3-5 years. Anytime a company files a BK personal or not its a concern, especially since merchant has a solvent business and could not keep up his personal life. I would take it on a case by case and find out the root of the CH.11 did he get divorced or did he make bad decisions for example. You can read up online about BK rules and if you need to take a merchant too court will that Ch. 11 block you from getting your funds? that I'm not clear on.
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09-29-2015, 04:54 PM #7
- Join Date
- Jun 2014
- Posts
- 541
If the bankruptcy was a Chapter 11, as opposed to Chapter 7 or 13, by definition it was a business bankruptcy-
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09-30-2015, 08:08 PM #8
- Join Date
- Apr 2015
- Location
- Florida, First MCA sold in 85/ WS in 76. CFP/RIA, series 3,6,7,8,10,63,Ins218,220.
- Posts
- 554
HOW DOES AN OWNER FILE AN 11 ON PERSONAL AND NOT A 13? doesn't make sense.
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10-12-2015, 08:22 PM #9
- Join Date
- Oct 2015
- Location
- Brea, California
- Posts
- 88
Chapter 11 is not only for businesses. It would also apply to high income individuals.
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