The previous
owner had owner financed me $50,000. I have paid her about 20,000 so far. This gallery I dont think will last much longer and I will close it. How will I pay her the remaining money? I pay her $510.97 a month . Any suggestions.. Should I claim bankruptancy?
2007-07-18 09:52:38 · 8 answers · asked by Anonymous in Business & Finance ➔ Small Business
I have a signed promised note with her witnessed by an attorney.
2007-07-18 10:05:37 · update #1
Is there no way to revive the business?
A local gallery owner in my town had a book written that showcased the life stories of some of the older women who had an impact on this area. If you are active in the art community, it shouldn't be too hard to find women 60 years and up who have a lot to tell. Find an author or write the book yourself if you are able. Then, each woman submitted a piece of art for the book. Each woman was also photographed. Then, the gallery owner held a reception with cheese and wine that was open to the public. She had as many of the women come as were able and they signed autographs. She sold the books for $25 and I think there were 12 or 13 women in the book. Then, they auctioned off the art pieces the women had made for the book. This was a smashing success and the gallery even got attention from the newspaper and TV news that week! I have a few thoughts on a reception like this and I can tell you more. If you are interested in doing something like this and want to know more, just email me.
Good luck! :)
2007-07-18 10:00:16 · answer #1 · answered by searching_please 6 · 0⤊ 0⤋
Owner financed? Well, do you have a lot of art left? If so, try to sell the items overseas - especially to the Asian countries like Japan and China - people pay top premiums for good art there. Maybe you could find a buyer for the gallery who might have additional art or can see a new way to take the gallery. Do you have any museum level pieces? Maybe you can find a wealthy patron to help.
Otherwise, you need to talk things over with the owner who lent you the money. Maybe something could be worked out that payments will be suspended until you can be in a better situation. Or maybe the owner will want the leftover art and call it even. Or maybe the payment terms can be lowered and re-structured. Try to work something out. Its better than trying for bankruptcy - the bankruptcy laws have changed so much that you will probably still have to pay them back anyways after recovering from the bankruptcy - they dont automatically forgive private debts anymore.
2007-07-18 10:01:07 · answer #2 · answered by MrKnowItAll 6 · 0⤊ 0⤋
First, is there a market for the type of business you need to sell? Can you get anything for the assets of the gallery you bought? If there is no possible way that the business can continue and or you can't raise enough money to pay this obligation then you need to speak to your creditor and see if you can negotiate the terms of the original loan. If after you've made every effort to pay this debt off and you still do not have enough to meet this and your other obligations, then consult an attorney about bankruptcy.
2007-07-18 10:26:27 · answer #3 · answered by cc smith 3 · 0⤊ 0⤋
Well i also own a small business myself what i would do is that i would first of all talk to the previous owner and ask her if you can have some time to pay her back then try to play around with the art galley to see if it will last any longer and if both ways dont work then i think you should file for banruptancy.
2016-03-15 06:30:32 · answer #4 · answered by Tara 4 · 0⤊ 0⤋
Actually, the bankruptcy laws for people who are really in need haven't changed that much at all. Before the law change, people who weren't even needy could just declare bankruptcy and write off all their debts. Now you have to show that you're in a no-win situation.
I don't know the law regarding business bankruptcy. You should talk with a bankruptcy attorney. They will give you a free consultation.
Bankruptcy doesn't forgive secured debt without you losing the asset(s) used for security. So you would lose the building if you do claim.
See a lawyer.
2007-07-22 09:02:21 · answer #5 · answered by Let me steer you 7 · 0⤊ 0⤋
Here are some options ...
(1) Find a local business broker and see if you can sell the company.
(2) Why do you think the business is failing? Have customers dropped off? Did you pay more than you should have? My point here is that if you can honestly determine this, you might be able to correct it.
(3) Will a good marketing/promotion program increase business?
2007-07-18 10:34:02 · answer #6 · answered by jdkilp 7 · 0⤊ 0⤋
What are the pieces in the gallery worth? Would she take them as payment? Did you sign a note with the prior owner?
2007-07-18 10:00:00 · answer #7 · answered by mac hockey 74 2 · 0⤊ 0⤋
try to sell it - or sell your painting on eBay -then file for bankruptcy-
2007-07-18 10:01:09 · answer #8 · answered by seawolf 5 · 0⤊ 0⤋