Have a business that due to health reasons my husband and I are/were not able to make work.
We now owe $45k on an SBA loan, $5k on a credit line, $4k to the landlords, and $3k in credit card debt.
We have our vendors payed off.
We did sell the equipment to payoff $12k of debt to vendors, part of what we owed the landlord and paid off most of the credit card.
We have never paid ourselves while in business. Just as we were taking off, we had our 4th kid almost 2 years ago and I and 2 sever hospitalizations last year.
The SBA loan is not attached to any of our property but we did persoanlly guarentee it along with my father in law.
I don't want to welch on our debt. But we are no longer doing that type of business either.
However we have started a new business which we are taking slow and is showing potential, without as much effort as the other business did, and with my health I am able to do this one. Plus, we will never have to have the overhead of a shop or equipment like we did with the screen printing shop.
Should we file bankruptsy? What other options are out there, especially since the business is no longer bringing in buisness? HELP!!
I'd suggest you talk with a couple of lawyers to see what your options are. Most will give a free consultation and you need to find one you can work with rather than just a guy to fill in the forms.
You've got a really big problem right out of the dock...the personal gurantee on the SBA loan. You could file personal BK which (I think) would get you out of that...but...then your father in law would get stuck with it.
Your total obligation is fairly nominal - approximately $50k, I would contact an attorney and suggest a payment plan with your creditors. Everyone loses in a Bankruptcy, you and the creditors, in a payment plan scenario, no matter how small initially will avoid bankruptcy for you and a significant write-off for the creditors.
I completely disagree with the last poster. Bankruptcy would give you a fresh start and relieve you of your stress. There are limited or no after effects any longer when filing [URL=http://www.directlex.com/chapter7-bankruptcy/filing.htm]chapter 7 bankruptcy[/URL] or [URL=http://www.directlex.com/chapter13-bankruptcy/filing.htm]chapter 13 bankruptcy[/URL].
I am sure you have heard about how difficult congress is trying to make chapter 7. You should speak with an [URL=http://www.directlex.com/bankruptcy-lawyer-az-arizona.htm]Arizona bankruptcy lawyer[/URL] and discuss your options before it's too late.
. There are limited or no after effects any longer when filing chapter 7 bankruptcy or chapter 13 bankruptcy.
Are you NUTS ???? Of COURSE there are after-effects to filing bankruptcy ! Consequences that will stick to your credit reports for the next 10 years for a Ch 7, 7 years for a Ch 13 (discharged).
You personally guaranteed the SBA loan, so you ARE on the hook for that. Given the rest of your story, you really DO need to consult a couple of bankruptcy attorneys, but don't just pick one from the yellow pages -- or from that website that Giggles there seems to be pushing.
For finding lawyers that are CERTIFIED BANKRUPTCY SPECIALISTS in your area, I would, instead, suggest you try this site -by the AZ Bar Assn.
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