Business Owner with 60K of CC Debt

Date: Fri, 07/31/2009 - 16:54

Submitted by anonymous
on Fri, 07/31/2009 - 16:54

Posts: 202330 Credits: [Donate]

Total Replies: 8

A couple of years ago My two business partners and I decided to open up a Restaurant, due to minimal funds available to us at that time my wife and I put a lot of the Build out, equipment etc... on our CC cards. The business is going great and we are actually in the process of expanding the restaurant. However having three owners makes it hard to make really good money. My wife and I are struggling financially we have almost lost our house and we are barely making our CC payments, if at all. We have a One and a half year old Son and we are expecting another child this February. I'm very concern with our situation I don not want to lose the business but I do not know how to keep up with our bills. We have done pretty much everything possible with our CC. Most of our CC have lowered their interest rates but we are still not able to make our payments. We have probably 60K in CC debt both our credit scores are in the low 500 last time we checked. We have sold everything we could to make extra money to pay off some of the debt. I'm trying to sell my car with no success. I just don't want to loose everything. What can/should we do?

Are these personal credit cards or business?? If personal, you

Are these personal credit cards or business?? If personal, you might wanna talk to an attorney about filing a chapter 7.

lrhall41

Submitted by SOAPLADY on Fri, 07/31/2009 - 18:01

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These are all personal debts. How is it work when you own a busi

These are all personal debts. How is it work when you own a business am I going to have to sell my shares?

lrhall41

Submitted by on Fri, 07/31/2009 - 18:13

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Yes. I agree with SoapLady. U should look into filing a Chapter

Yes. I agree with SoapLady. U should look into filing a Chapter 7 bankruptcy to wipe out that debt.

Since your credit scores are already in the 500's, it would make good sense to file if possible.

Your credit will suffer for 10 years, however, you will release yourself from that burdensome debt.

lrhall41

Submitted by on Fri, 07/31/2009 - 18:16

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One of my biggest concerns is loosing the business. When I file

One of my biggest concerns is loosing the business. When I file chapter 7 will I have to sell my business?

lrhall41

Submitted by on Fri, 07/31/2009 - 18:23

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Were the credit cards personal credit cards or business credit c

Were the credit cards personal credit cards or business credit cards?

You are allowed so much in exemptions when you file bankruptcy.

lrhall41

Submitted by on Fri, 07/31/2009 - 18:26

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I would suggest talking to an attorney and get a free consultati

I would suggest talking to an attorney and get a free consultation.

lrhall41

Submitted by SOAPLADY on Fri, 07/31/2009 - 19:33

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Debt settlement

You may want to consider debt settlement. You could reduce your payments by 40 to 60% and pay of your debt in 2 to 3 years. Your already low credit rating wouldn't get much lower and you can quickly begin to rebuild it when your debt has been settled. This a great alternative to bankruptcy.

lrhall41

Submitted by on Sun, 08/02/2009 - 10:14

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In order to determine if you should either file for bankruptcy (

In order to determine if you should either file for bankruptcy (chapter 7) or enter into a debt settlement program, depends on your overall financial situation. If you can afford to make reduced monthly payments to settle your debt and have enough left over to cover your living expenses, then you should consider debt settlement. Your credit will begin to get better once your debts are settled. With bankruptcy, it will stay on your credit for 10 years. I suggest you consult with a debt settlement company who does a financial analysis of your situation to determine if debt settlement is right for you or meet with a bankruptcy attorney to determine if you qualify for chapter 7.
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lrhall41

Submitted by on Sun, 08/02/2009 - 17:06

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