what to do?

[waterman]

Here is my deal.

I was burned by a chinese supplier for over 150K which more or less put my 2M a year business in big trouble- as we couldn't deliver product. Things are getting back in order now but I have missed allot of payments on debt- personal and business....I had a 740 credit score now its down to 590 after only missing one mortgage payment and a late on a car payment. I have to keep my staff so I have to pay them, I cant risk losing the business- thus I put the money towards staff and getting things moving rather then paying business debt. So im thinking I will just get rid of this debt once and for all and stop struggling to try and make interest payments on loans I will never be able to pay back.

So here is the problem:

I personally guaranteed all the credit cards and loans and have about 250K in business debt. I cant pay this right now and haven't for the past 2 months, so what should I do? I have a house with some equity- about 100K and some stocks- I want to keep that.

I called a BK lawyer last week meeting with them soon. Just wondering what to expect from guys that have been through this before.

Really sucks I had perfect credit for years and now this.....

[dspii]

The best advice is to seek the advice of a couple qualified lawyers. Most times a business and you personally are treated as the same and both can be liquidated to repay creditors. Too many laws and legal business structures to give better advice, but normally your interest in the company is considered an your asset.

Screw the credit score.....it won't be engraved on your headstone or highlighted in your obituary and you can't pass it down to your kids. Credit is handy, but believe me, we CAN survive without it, even when owning a business.

So try not to let your FICO wear on you...it's just a number...it does not define the person you are.

[AngelinaCatHub]

The best advice is to seek the advice of a couple qualified lawyers. Most times a business and you personally are treated as the same and both can be liquidated to repay creditors. Too many laws and legal business structures to give better advice, but normally your interest in the company is considered an your asset.

Screw the credit score.....it won't be engraved on your headstone or highlighted in your obituary and you can't pass it down to your kids. Credit is handy, but believe me, we CAN survive without it, even when owning a business.

So try not to let your FICO wear on you...it's just a number...it does not define the person you are.

Excellent advice.

Unfortunately, you must pay your peo;e before you pay yourself. Also, unfortunately, you are and will be one of many in small business who are having problems in our current economy. I wish the best for you and help is here. 'Hub

[justbroke]

I hope you live in a State which has very nice homestead exemption rights... like Florida and Texas!

[waterman]

Thanks for the tips.

The business is a corporation and the business is worth nothing without me and has no assets other then goodwill. I do all my business online and can work from any place. So no problem for me to close up the corporation and start a new one...

About assets I have a house and some other assets( stocks)? what could I keep, should I put the house into my parents name or something? Also I am getting married in a few months will any of this have an effect on my wife if the BK is not finished before we are married?

Yes forget the FICO- I never had any personal debt other then a car loan and mortgage-never needed it. Paid my dreidt card bills in full every month- its just these business loans that are killing me and of course the supplier that screwed me! Im most likely moving back to my wifes country next year, so credit in the US does me no good anyway.