First of all I like to thank you I often listen to you on radio and you discuss cab medallion situation. Ok my question is since Uber came to the city, our hard earn taxi medallion just became worthless. Once our medallion worth over $350000 and now no one will buy it for 50000. This fall out is to blame on corruption of chicago and a poor person who worked so hard all his life is left with nothing. Bunk ruptucy for us is inevitable, I had near perfect credit and I never thought we will be filling for bankruptcy but I can’t keep throwing my money towards my medallion payment. My question is if I do file for bankruptcy will it effect my personal credit, since the loan is under my corporation. Please reply anxiously waiting god bless thanks
Terry Says: OK, let me deal with your specific question first. Yes, it is likely to impact your personal credit, depending on how your corporation is structured. If you are the sole shareholder of your corporation, or if you personally guaranteed the loan on the medallion, it is very likely that the bankruptcy would somehow be reflected on your personal credit report. I would suggest dealing with a competent bankruptcy attorney who can give you more specific advice. Or call the National Foundation for Credit Counseling at 800-388-2227. They could give you a more specific answer, and direct you to a bankruptcy attorney.
I have written about the medallion situation, and certainly feel sorry for those who took out loans to buy medallions — and worked 12 hour days just to pay off the loan and support their families. The problem was that this was a “rigged” market in the first place. The taxi companies lobbied city governments to limit the number of medallions –and they own most of them. Thus they could set the drivers fees and reimbursement. Then competition came in. The big companies that owned medallions have suffered — although they haven’t acknowledged the totality of the decline in medallion values. Sadly, the small entrepreneur got caught in the middle.