Chapter 7 Bankrupcy

[basia3343]

I'm filing Chapter 7 bankruptcy due to a failed business I'm the sole owner
The business has unpaid tax debts that it is unable to pay off. I know in general, I'm responsible for at least the principal of the taxes, and that they aren't dischargable under Chapter 7 . Also, on all of those taxes there are penalties and interest charged on top of the principal balance. Am I responsible for both the penalties and interest personally? Are the penalties or interest dischargeable under Chapter 7? The principal alone is a huge amount that's going to be painful for me to pay off. I dont have any money to pay it off. Is there any way to get settlement on those payment?

[mike12sd]

Debtors should be aware that there are several alternatives to chapter 7 relief. For example, debtors who are engaged in business, including corporations, partnerships, and sole proprietorships, may prefer to remain in business and avoid liquidation. Such debtors should consider filing a petition under chapter 11 of the Bankruptcy Code. Under chapter 11, the debtor may seek an adjustment of debts, either by reducing the debt or by extending the time for repayment, or may seek a more comprehensive reorganization. Sole proprietorships may also be eligible for relief under chapter 13 of the Bankruptcy Code.

Why are you try to file for a chapter 7 if you can save yourself by filling chapter 11 protection from a debt

[basia3343]

I try to get out of a debt by filling chapter 7. but I am aware that court will take everything that is my personal items such as car

[mike12sd]

First of all you need to find wheter or not your are eligible for filling chapter 7

To qualify for relief under chapter 7 of the Bankruptcy Code, the debtor may be an individual, a partnership, or a corporation or other business entity. 11 U.S.C. §§ 101(41), 109(b). Subject to the means test described above for individual debtors, relief is available under chapter 7 irrespective of the amount of the debtor's debts or whether the debtor is solvent or insolvent. An individual cannot file under chapter 7 or any other chapter, however, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d) and (e). In addition, no individual may be a debtor under chapter 7 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court.

[evangrozny]

I do not know to mucy about the bankrupcy issues, but I know one thing that if you fille for bankrupcy of a business you have rights depending on the business you own. for exsamppel if you have a LLC, government or the lenders or whoever gave you money cannot go after your personal belongings, but only after your business

[evangrozny]

You have to remember that if you file for bankrupcy under chapter 7 or 11 it is going to destroy your credit. fourtunatelly there are shortcuts to get your credit back on track. One of the options is consulting your lawyer. another one is education yourself on the subject which I think will give you much more sutisfaction.