I have a business with a very high debt structure, and we do not have enough cash to pay the bills. I have had no luck selling the business. We (my partners) mortgaged homes in order to finance the purchase of the business. The seller also gave us a deed of trust. In order to relieve some of the debt, we have placed our homes up for sale, but the real estate market is in the tank and we can't sell the homes. We have sent a letter to the seller asking for a 66% reduction in the loan balance, but no response. We have stopped making payments on the seller's note, and have been threatened with foreclosure. This is a complex situation. Thank you to anyone who has suggestions to help.
2007-01-07 06:39:53 · 3 answers · asked by dbo 1 in Business & Finance ➔ Credit
Oh brother, this is why I thank God I didn't borrow money to operate my business when it failed. What a mess, but you obviously know that or you wouldn't be asking.
The thing to do in these heartbreaking situations is to really make a conscience decision to keep your priorities straight. Your highest priorities include your faith, your marriage, and your family. When you make a conscience decision to put these things first the business and debt problems can be worked through. It's certainly not fun, but it does reduce the amount of spiritual and emotional drama you'll have to endure.
The next step is to accept reality as it is. You're trying to sell your houses to unload the debt. That is a positive move, but you probably need to reduce the prices to move the houses. The house is only worth what the market is willing to pay...no more and no less. You need to accept that.
This is also true for the business. You need to cut the price or sell off assets if the previous owner will not work a deal with you. A foreclosure is a worse situation because he will probably liquidate the business at bottom dollar and sue you for the difference. Not a pleasant situation. If you cannot sell the business outright see if you can sell off assets, equipment, and so on.
2007-01-07 08:53:54 · answer #1 · answered by KC 4 · 0⤊ 0⤋
contact the www.sba.gov site and ask for help tons of free info ask for a score person a retired biz person who may be able to help. learn about the inc laws asap too and go to www.freddiemac.com or www.fanniemae.com to learn about stopping foreclosure if you can. or www.hud.gov for help. tons of free stuff. if you can save it try. if you do. find me again. offer me a pt job!
2007-01-07 15:58:37 · answer #2 · answered by CCC 6 · 0⤊ 0⤋
Speak to a bankruptcy Attorney!
2007-01-07 14:47:06 · answer #3 · answered by mjorod 4 · 0⤊ 0⤋