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Business debts

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M

maxfs

Junior Member
What is the name of your state (only U.S. law)? NJ

I have a question- my company is an LLC and we have basically come to the point where the LLC isnt making any money anymore. We have some outstanding debts that we are on the hook for.

We owe a SBA loan for 40K, a credit line with the bank for 20K, and a credit card with the same bank for 12K. We signed personally for all of these.

We just negotiated with our landloard and they let us off the hook for the 86K we owed them for the next 2 years with a 12K buyout. I do not want to have to go to BK.

Can anyone give me any ideas on what we should do about the bank and the outstanding debt? I want to work with everyone to get this taken care of but I also am strapped.

Any thoughts?
 


M

maxfs

Junior Member
business debts

thats the problem- I have assets and I have income- the business is all but done however. I really dont want to take income or assets to pay back the debt of this failed business- I realize that i should just go that route but I cannot afford to do it
 
A

Antigone*

Senior Member
maxfs said:
What is the name of your state (only U.S. law)? NJ

I have a question- my company is an LLC and we have basically come to the point where the LLC isnt making any money anymore. We have some outstanding debts that we are on the hook for.

We owe a SBA loan for 40K, a credit line with the bank for 20K, and a credit card with the same bank for 12K. We signed personally for all of these.

We just negotiated with our landloard and they let us off the hook for the 86K we owed them for the next 2 years with a 12K buyout. I do not want to have to go to BK.

Can anyone give me any ideas on what we should do about the bank and the outstanding debt? I want to work with everyone to get this taken care of but I also am strapped.

Any thoughts?
Click to expand...
You are personally on the hook for those debts. You might want to call the bank and see what type of alternative payment terms you can negotiate.

It is pay them or file BK.
 
FlyingRon

FlyingRon

Senior Member
If you took on personal responsibility for the business debts, the thing won't die with the LLC, the bank will come after you directly just as if you'd got the debt in your name in the first place. Your credit will be trashed and a court judgment could be perfected against your other assets.
 
A

Antigone*

Senior Member
maxfs said:
thats the problem- I have assets and I have income- the business is all but done however. I really dont want to take income or assets to pay back the debt of this failed business- I realize that i should just go that route but I cannot afford to do it
Click to expand...
Then your assets and your income will satisfy YOUR debts.;)
 
M

maxfs

Junior Member
business debts

the thing is that non of these debts are showing on my credit report. If they don't show then how will it hurt my credit.

what about debt settlement?
 
A

Antigone*

Senior Member
maxfs said:
the thing is that non of these debts are showing on my credit report. If they don't show then how will it hurt my credit.

what about debt settlement?
Click to expand...
The fact that they don't show up on your credit at the moment means nothing. You are a guarantor, not the borrower.

Debt settlement :rolleyes: you're funny.
 
M

maxfs

Junior Member
why not debt settlement? I have heard from others that is a way to go. I am not claiming to know if this is the answer but I would like to understand why you rolled your eyes at me when I mentioned it. thanks in advance
 
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