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Help, I used a $50,000 line of unsecured credit to start a business...

Date: Wed, 04/22/2009 - 09:02

Submitted by anonymous
on Wed, 04/22/2009 - 09:02

Posts: 202330 Credits: [Donate]

Total Replies: 4


...the business was doing great for 4 years and I was paying off the line on time every month with no issues. Since the market has gone into a down turn my business has failed. I was paying the line with my savings and trying to generate new business. At one point I was using my line of credit to pay off my line of credit. I had worked out payments with the creditor but it was like throwing my very limited funds down the drain each month. Now I'm back up to my max (50K) and all the hard work I did with the business has gone down the drain. I have cut back/eliminated all of my expenses and unnecessary spending. I have not paid the line of credit in 5 months now and the creditor is calling all the time. They say they have a program to put my on but it would be for at the very least $1000 per month. I am currently living paycheck to paycheck and do not have anywhere near that amount to spend each month. Is bankruptcy my only option?


Did you sign fo this line personally? BK should be your last option. It will stay on your credit report for ten years. If you let it go to collections/charge off it will stay on your reports for 7-8 years. If you took cash draws on the line and did not make any payments after doing so you are open to being sued.
One option is debt settlement, which can reduce the debt amount 40-60 % and have you debt free within a 18-48 month period, depending on what you can afford monthly. Again this debt may not qualify for Debt Settlement if you took cash draws, making no attempt to make payments. the enrollment plan for Debt Settlement would be significanly less than the $1,000.00 per month, you are looking at a payment of $530.00 per month.ADVERTISING LINK REMOVED


lrhall41

Submitted by getdebthelp on Wed, 04/22/2009 - 09:34

( Posts: 7 | Credits: )


well you have a few options, have you checked into consolidation programs? although you may not be eligible for it scince you are already late. you could consider settlement scince you are already late this may be your best option, but it being a large amount, you are likely to get sued, if you get sued depending on your state they will either garnish wages, tax leins or whatever, or you could file bk. As the above post mentioned if you have taken cash advances settlement may not work.


lrhall41

Submitted by love_my_things on Thu, 04/23/2009 - 06:00

( Posts: 1434 | Credits: )