Thread: Small Business about to fail

QUOTE (jtoast @ Nov 17 2009, 12:53 PM) An important question that I haven't seen asked is "how is the business structured?" Did you incorporate, did you form an LLC or are you just a sole proprietor? This matters because if you either incorporated or formed an LLC you may be able to have the business file bankruptcy instead of filing it personally. If you stuck with sole proprietor you are going to have...

QUOTE (fnguy @ Nov 17 2009, 11:44 AM) QUOTE (Jen23514 @ Nov 16 2009, 09:53 PM) QUOTE (fnguy @ Nov 16 2009, 02:57 PM) I live in Missouri. within limits, they can not take your home. homestead and all that. What are the limits? It varies by state, depending on homestead exemption. If you have loans on them and the equity is basically nothing they can't take them either and you can reaffirm...

QUOTE (fnguy @ Nov 16 2009, 01:57 PM) I've talked to an attorney, he told me I should look at ways to pay off the debt if possible, Though truthfully I don't have the means to do that. Most people would rather pay off the debt than have to declare bankruptcy. Unfortunately, that is often not possible. I would speak with a different (bankruptcy) attorney. RCJ ETA: Also, check out the bankruptcy forum here on CB......

QUOTE (fnguy @ Nov 16 2009, 02:57 PM) I live in Missouri. within limits, they can not take your home. homestead and all that.

QUOTE (toopooor @ Nov 17 2009, 11:09 AM) If the debts are PG'd, it won't matter Misread the OP. I read it that first time as some of the debt was PG'd, not all of it. My advice to talk to a good CPA stands though as it is amazing how a cpa can find ways to restructure debt that you didn't know existed.

I would ask why the business is failing. is it you and the management? In that case... what about selling the business? if it is the business model itself, will be more difficult to sell it. What type of business? where?

Do you have any assets you need protected? If it were me, I think I would file BK if it were possible. I would advise you speak to an attorney to see what your options are. There are a lot of people here who have recovered nicely after a BK, and probably more who have toughed it out for as long as possible, and THEN had to file. It's a decision you have to make but make sure you don't totally close off your options.

QUOTE (fnguy @ Nov 14 2009, 12:08 PM) My small business is about to fail. I owe roughly 60k in term loans from the start-up, 50k on credit lines, and 20k in CC debt, all personally guaranteed. Additionally I personally guaranteed a commercial lease with roughly 38k left remaining for two more years of the lease. I have accepted that the business has failed. I've never defaulted on any loan before in my life, but I...