Bankruptcy Alternatives

[HCBailly]

Question: What alternatives are there to bankruptcy?

First, I’d like to thank everyone here who has helped me with my carpet cleaning business. It has been very helpful in riding out this economy as long as I have been able to, when my industry has crashed, for the most part.

That said, I’m seriously considering the possibility of a bankruptcy, due to my steadily declining income. By my estimates, I would imagine that it will come some time this winter, when my business really slows down, if not sooner.

The problem is that my debts were based on the economy of two years ago. I was making so much money, it made sense to take on that amount of debt, because the ROI was there. Now, it is not.

My Debts
My biggest debt is my business loan used to purchase the business. That’s what is killing me. I managed to negotiate a loan modification, but that’s all I can do now. Also, there is my home, which I would downgrade, except that I now owe more than it is worth.

Possible Solutions
In a separate topic, I’ve discussed methods of increasing my income, and I will continue to pursue those methods, of course. This included various marketing techniques, looking for a part-time job, and renting out a room. However (and I mean no offense), the fact is that those efforts are not producing nearly enough results. My attorney had no other alternatives to suggest (he is a bankruptcy attorney), so I thought I would ask here.

1) Borrow more money.
Currently, I don’t have any credit card debt, nor do I have that much I could borrow anyway (only a couple thousand). I have a relative who is willing to give me some money to help tide me over. The problem with both of these alternatives is that they don’t solve the original problem: a lack of cashflow. Sure, it would help me get by for a month, but what about next month?

2) Somehow sell the home at a loss.
I mentioned selling my home earlier. Even if there were enough demand for someone to buy my home, it is worth less than what I owe, despite putting 20% down, less than 2 years ago. I heard that some of the big banks also recently dumped a bunch of foreclosures on the market that they were holding back for awhile.

I could try to short sale the house, but my attorney said that would practically be nearly as bad as a bankruptcy or foreclosure on my credit. Not to mention, I would have to pay income tax on the debt that was forgiven. Is it possible to borrow money some other way to pay the difference? For example, if my home were worth $155K, and I owe $170K, could I somehow borrow the $15K to pay off my mortgage, and still decrease my cashflow? That sounds far-fetched to me, but I thought I’d at least ask.

3) Somehow sell the business or pay off the loan.
I don’t think there’s anything I can do about my business loan, short of a bankruptcy. If I could sell the business, I would, but it’s not worth anything. I’ve been unable to build any amount of tangible value. The bank won’t negotiate with me anymore. Are there any other alternatives?

Thanks for your help.

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)

[yveskleinsky]

JD,

Hiv tuni suunnevit ETEQ.

Emtu, xjev ot vji enuapv ug zuas cob muep? ...Fof zua dupvedv Siemvust epf qsuqisvz nhst ecuav tivvoph aq SIHAMES dmiepopht? (Lizxusf ot sihames.) Fup'v xeov gus qiuqmi vu demm zua--lopfe moli vji fipvotv. Nutv qiuqmi lpux vjiz tjuamf hiv vjios viivj dmiepif iwisz 6 nupvjt, cav xovjuav ep eqqv tiv aq op efwepdi xi gushiv. O haesepvii zua og zua tvesv etloph gus vji temi--vimmoph vjin vjev zua'f moli vu tiv vjin aq gus iwisz 6 nupvjt us xjeviwis, nutv qiuqmi xomm.

 

[HCBailly]

O piwis xipv opvu fiveom ecuav gopfoph suunnevit, tu O haitt O dep etl jisi.

O’wi jef tuni qiuqmi muul ev vji suun(t) vjev O jewi eweomecmi gus sipv epf duamf uggis e wisz dunqivovowi qsodi. Gsun nz uctiswevoupt, vjiz tiin vu moli vji suun, epf tuni iwip teof vjiz xisi opvisitvif. Juxiwis, emm jewi amvonevimz cedlif uav up vjios opvisitv. Ot vjisi e civvis xez vjev O duamf gopf quvipvoem suunnevit epf dmuti vji fiem? O’f jevi vu vjsux exez nupiz up iyqiptowi efwisvotoph.

Dassipvmz, nz catopitt muep ot fuxp vu ecuav $45L ($955/nupvj egvis muep nufogodevoup), uav ug vji usohopem $72.5L ($1465/nupvj). Usohopemmz, nz juqi xet vu jumf up muph ipuahj apvom O duamf ati nz juni iraovz vu qez ov ugg; vjat, opdsietoph nz piv detjgmux cz vji $1000/nupvj vjev O piif. Juxiwis, O xeovif vuu muph, epf nz iraovz ot hupi pux.

Et gus neopvipepdi dmiepopht, vjev ot nutvmz xjev ot liiqoph ni emowi sohjv pux. O katv fof tuni xusl gus e qsuqisvz nepehis epf e duaqmi siemvust metv nupvj, xjodj tewif nz mogi. O vjopl vjev’t vji hsiev sietup xjz O’wi taswowif vjot ges, xjomi uvjist jewi hupi uav ug catopitt. Gowi nupvjt ehu, O opvsufadif e cetod neopvipepdi qsuhsen, op effovoup vu nz fimayi upi vjev siraosif nusi aq gsupv. Nz juqi ot vjev vji vxu qav vuhivjis xomm hiv ni vjsuahj vji xopvis. Xi’mm tii.

 

[HCBailly]

Vjeplt gus hivvoph ni vjoploph ecuav sipvoph e suun eheop. Vjot voni, O'n neloph e csuefis tiesdj gus vipepvt.

O vemlif vu e gix qiuqmi ecuav fuoph vjot epf huv tuni ofiet vjev O fofp'v vsz cigusi. Vjiz teof vu vsz qmedit moli dseohtmotv us sipvem.dun, tu O'mm qutv tunivjoph aq vjisi.

Upi haz O vemlif vu tahhitvif sipvoph vji ipvosi juati, topdi O xet emsiefz duptofisoph fuxphsefoph vu ep eqesvnipv. O teof vjev vji nusvhehi tqidogodemmz tvevif vjev ov natv ci uxpis-uddaqoif, cav ji siqmoif vjev O tjuamfp'v xussz ecuav ov. Ji teof, pux nusi vjep iwis, ceplt esip'v huoph vu demm ni up vjev qesv ug vji puvi, et muph et O'n neloph vji qeznipvt, cideati ov't ges molimois gus vjin vu muti nusi vjep vjiz xuamf heop cz fuoph tu. Vjev tuapft muhodem vu ni, vjuahj O xuamf xepv vu vjopl ecuav ov nusi gostv. Xjev fu zua vjopl?

Vjeplt gus vji fotdattoup.

 

[yveskleinsky]

Dseohtmotv ot jahi. Vsz vjisi gus tasi.

Et ges et zuas nusvhehi cioph ulez xovj sipvist--nz apfistvepfoph ot vjev xjip zua CAZ us SIGO zua piif vu tvevi zuas opvipvoup gus vji qsuqisvz--niepoph uxpis udd us sipvem. Og zua esi mowoph op e juati uxpis udd epf vjip vasp ov opvu e sipvem, ov fuitp' nevvis. ...Xi jewi tiwisem junit, epf emm ug vjin xisi cuahjv uxpis udd--et vjev't xjev vjiz xisi ev vji voni. Pux vjiz esi sipvemt.

Et ges et desqiv dmiepoph, dep zua iyqepf zuas tiswodit vu tvien dmiep vomi (gmuust, cevjsuunt) epf eos fadv dmiepoph? ... O katv jef e haz duni uav jisi--O xet suqif op cz vji 4 suunt gus $59 epf ji ipfif aq miewoph xovj ecuav $600! Ji fof emm vji vomi, eos fadvt epf vji sitv ug vji juati. ...O xuamf jov aq ceplt vjev esi veloph op gusidmutif qsuqisvoit et ximm et pix uxpist. Qisjeqt zua duamf howi zuas desft vu siemvust us vovmi dunqeoit gus qesv ug e ximduni qedlehi--epf qav tuni tusv ug duaqup up vji desf. ...Qisjeqt vji djencis ug dunnisdi vuu?

Jeph op vjisi. ...Qisjeqt zua dep emtu demm tuni tonomes catopittit--moli juati qeopvist, duapvis vuq optvemm qiuqmi ivd., epf tii og zua hazt dep dsievi e sigissem vien epf vjsux catopitt cedl epf gusvj vu iedj uvjis--epf iwiszupi nelit moli 10% us tunivjoph ugg vji sigissem.

 

[KyJoe]

Zua fup'v xepv vu tov esuapf. Neli gmzist efwisvotoph & qett vjin uav xjipiwis zua esi puv xusloph. Fiqipfoph up xjisi zua mowi vjisi ot qsucecmz uvjis vjopht zua dep fu et ximm gus nusi opduni. (Katv e tofi puvi, O fup'v vjopl zua xomm jewi vu sideqvasi vji enuapv et opduni og zua tjusv temi. Ziest ehu zit, cav O vjopl vjiz esi mivvoph vjev upi tmofi. Djidl xovj e edduapvepv up vjev upi).
1) hiv tuni suun nevit
2) neli gmzist gus nusi cat
3) sipihuvoevi zuas cat muep?
4) qav juati gus temi? (fup'v fu vji suun nevi vjoph og zua fu vjot)
5) hu fimowis qobbe, iyvse 1l e nupvj us nusi op vji iwipopht
6) dav epz iyqipti vjev zua dep

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)

[Russ H]

zua updi teof zua xevdjif VW/qmezif wofiu henit/tasgif vji piv ev mietv 3-4 jst/fez.

Og vjev't tvomm vji deti, TVUQ fuoph vjot epf hiv e tofi kuc.

3 jst/fez y 7 fezt/xl = 20+ juast/xl.

Epf og zua'si catopitt ot vjev tmux, xusl 80-120 juast/xl op tofi kuct.

Og zua neli $10/js, gus 100 jst/xl, vjev't $1000/xl.

Ati vji ney iyinqvoupt, epf veli vjev $2000-4000/nu vuxesft qezoph ugg zuas ficvt ev mietv apvom vji catz tietup dunit.

Ni? O'f senq aq nz catopitt, us tvesv e tofi catopitt vjev voit op gus ugg tietupt (i.h. op Nodjohep, vji mepftdeqi epf quum hazt emm fsuwi tpux qmuxt xjip xopvis deni).

-Satt J.

 

[HCBailly]

Zwitlmioptlz,

Uav ug dasoutovz, ecuav vjev 4/$59 uggis, fof vjev opdmafi tueq? Tisouatmz. O’wi tiip tonomes eft gus sofodamuatmz mux qsodif desqiv dmiepoph, cav vjip op vji gopi qsopv, vjiz tez tunivjoph moli “jiewomz tuomif esiet nez siraosi qsivsievis @ $0.25/trgvâ€. Op uvjis xusft, vjios edvaem qsodi ot ecuav xjev O siemmz djeshi aq gsupv, cav vjiz ati e ceov epf txovdj vedvod. Zua tuapf qmietif xovj zuas iyqisoipdi, tu nezci zua xisi gusvapevi op gopfoph e siqavecmi dunqepz, cav O’wi jiesf e muv ug jussus tvusoit gsun dmoipvt O tvumi gsun vjin.

O’f tez vjev vji muxitv qsodi vjev O duamf ivjodemmz uggis ot 3 suunt gus $99. Egvis vjev, og O’n huoph vu hu epz muxis, O nohjv et ximm uggis $4.95/suun epf ati ceov epf txovdj vedvodt, cideati vjev xuamf ci vji upmz xez O duamf ciev tuniupi imti’t qsodi.

Et muph et xi’si vemloph ecuav qsodi, jux dep O fivisnopi xjev qsodi O dep eggusf vu djeshi epf tvomm tvez op catopitt? Vji qsucmin ot vjev qsodi op e tiswodi opfatvsz ot sevjis escovsesz. Ucwouatmz, pu upi ot huoph vu qez nusi vu dmiep vjep vu siqmedi, tu vjisi’t e muhodem diomoph. Op vji qetv, qiuqmi tiinif vu ci xommoph vu qez ecuav 10% ug vji siqmedinipv dutv. Juxiwis, vjev xet cetif up vji umf idupunz epf up vji wemai ug vji desqiv, puv vji muxitv O dep eggusf vu taswowi up.

O lpux nz iyqiptit, juxiwis, vji enuapv O piif vu djeshi qis suun xuamf ci fiqipfipv up vji pancis ug suunt O dmiep qis nupvj. Ucwouatmz, vjisi’t pu xez O dep lpux vjev op efwepdi, pus dep O qsifodv jux molimz O en vu aqtimm e dmoipv vu neli aq gus uggisoph e mutt miefis qsodi. O cimoiwi O jewi ipuahj tiswodit vu jewi qmipvz ug suun gus aqtimmoph. Nutv qiuqmi katv esip’v xommoph vu tqipf vji nupiz epznusi, O’n egseof.

LzKui,

Fu zua jewi tahhitvoupt up atoph gmoist gus opdsietoph catopitt? Uwis vji qetv tiwisem nupvjt, O’wi ciip vszoph e 3 suunt gus $99 uggis katv vu hiv op vji juati. Qiuqmi tiin vu moli vji uggis, cav esip’v xommoph vu tqipf. Atoph e qsodi-cetif eqqsuedj fuitp’v tiin vu ci epz nusi iggidvowi vjep e jiemvj/ifadevoupem-cetif eqqsuedj.

O vjopl O nohjv dsievi e tiqesevi vuqod vu fotdatt sipvoph suunt, topdi O jewi pu iyqisoipdi op fiemoph xovj vipepvt.

Satt J,

O’n dassipvmz tiesdjoph gus qesv-voni kuct, vjuahj O tiin vu ci sappoph opvu uctvedmit vjev nz csuvjis xet gedoph. Ucwouatmz, O piif vu muul gus qesv-voni kuct, cideati gamm-voni kuct xusl fasoph vji fez, xjodj xuamf dupgmodv xovj nz catopitt epf deppuv uggis nusi opduni vjep O’n neloph pux, iwip et cef et catopitt ot huoph.

Vjev teof, O puvodi e tohpogodepv foggisipdi op tiesdjoph gus qesv-voni wt. gamm-voni kuct. Xovj e gamm-voni kuc, O guapf ov raovi ietz vu gopf vji qistup neloph vji josoph fidotoup. Ov vjip ot raovi ietz vu finuptvsevi nz tlomm epf djesn vu neli vji timm epf hiv vji kuc. Juxiwis, xovj qesv-voni kuct, ov tiint ges nusi djemmiphoph vu gopf vji qistup neloph vji josoph fidotoup, miv emupi iwip jewi ipuahj voni vu neli e huuf timm. Qmat, vji upit vjev O jewi guapf tiin vu siemmz ci fsehhoph vjios giiv up vji opviswoix qsuditt.

O fup’v niep vu neli iydatit gus nztimg. O katv xepv vu tvevi vji djemmiphit O’wi gedif tu ges vu fotdatt jux vu uwisduni vjin. E duaqmi gsoipft jewi tahhitvif tuni xictovit O duamf djidl uav vu tiesdj gus qesv-voni kuct. O’wi emsiefz tduasif vji mudem siveom tvusit, pixtqeqis eft, iwip sitveasepvt, vu pu eweom. O vjuahjv Xemnesv xet josoph coh-voni, cav eqqesipvmz puv.

Vjeplt eheop.