bankruptcy
Hi Terry – We’ve never considered bankruptcy, but my 64 yr old husband’s manufacturing business has been considerably slow! We are about $77,000. 00 in debt not including our mortgage… bankruptcy is starting to look like the only option lately. Please direct me with some general comprehensive info. Thanks so much!
Terry Says
Well, sometimes bankruptcy is the only option, but you need unbiased advice — which you will likely not get if you start out answering one of those late night bankruptcy ads on tv. (They run those ads late at night because they know people in debt are wide awake worrying!)
I’m going to make the same suggestion I always do: Contact the National Foundation for Credit Counseling at 00-388-2227. That will connect you to the nearest local office where you can get advice you can trust. Now, because a business is involved there might be some other “wrinkles” in your situation. If your debts are personal, then NFCC can give you guidance. But an attorney could possibly be of some help if the business holds the debt. So be sure to make that distinction.
If you do consider bankruptcy, then NFCC can direct you to a competent attorney. You’ll want to ask what assets you can keep, and what will be taken by the process. You’re smart to consider this now, before it is an immediate crisis. And, of course, it’s worth considering whether the sale of the business (its assets, its customer list) could provide cash to pay down your personal debts. Those assets may have some small value to your competitors. And your husband’s experience may also be valuable to them, possibly tying an acquisition to his continued employment for another year or two.
This is a sad way for an entire business career to end –but as my grandmother would say “at least you have your health.” This might just be the start of another and even better life. Write back and let me know what happens.
