170k in Debt... !! Any Advice ?

Yeah, you'd be able to keep the business running. However, you wouldn't be able to borrow more from the accounts you have put for settlement.

It's hard to comment whether you should take the BK route or try settlement. I think BK can be done if there is no opportunity for the business to revive in near future and you can't come up with a proper settlement agreement with the creditors.

considering that your debt is so large it may be in your best interest to file bk. but if you decide against that, they cannot make you close yoru business but if taken to court they can depending on your state attach wages, place a bank levy on your account, and a few other things.

keep in mind that your cards and lines of credit will be closed for good and you will not be able to use them. but i am glad to see that your ready to take control of this before things get even more out of hand. have you considered a consolidation program? if you can afford this its usually your better option than the other 2 but alot of people cant make the payment.

Thanks for your advice
Do you have any idea what settlement percentages we might get from our list of creditors ?
Our big concern is the 100k unsecured biz line of credit (Union Bank)
We are a sole propietor business by the way.
For example Do you think we would be successful in getting a 30 - 40 % settlement while keeping the business open or would they more than likely want closer to 70-80 % becuause we are still in business ?
We plan on keeping the lines of communication open with our creditors and let them know that business is way down (down about 50 %).
I know this is a complicated situation
and I appriecate all your advice !
Thanks

I would not do BK unless I had to, settlement is much better. It doesn't matter how much debt you have, take one account at a time. First you need to stop paying on the accounts you want to settle. They will not offer good settlements in the first few months, you need to wait it out. They will call everyday, even if you talk to them. I would talk to them about once a month until you are ready to settle. Do not send in small payments that they will ask for, it will just start everything all over again.

After awhile they will start sending you offers, get everything in writing before you pay anything. You can do it yourself with some phone calls and some letters, it is not that hard.

you should be able to still get settlements if you are dilligent and play your cards right for under 50% as long as you havent charged anything recently. but it will take alot of time im guessing due to the size of your debt.

How recent is considered recently used?