My wife has been trying to get a business off the ground for six years. It has lost money each and every year though not so much that I could not offset it w/ my business income. I could cover tens of thousands when spread out over a year however, the economy has seriously impacted her and now about 120K is due and the legal actions are about to commence. Her business has sapped our equity and credit cards and about the only asset left is our FICOs. The company was originally founded as a CA corp but has since been suspended. Whether or not she can overcome the current market conditions and get back to recycling money is a big if right now but neither of us want to discharge the debts because we feel an obligation to pay as a matter of principle. I just need to buy some time and try to work out a solution. There are some possible deals in the works that could put the company in the black but they will require months to secure. One creditor has already filed a civil suit and the mandatory arbitration is scheduled in 5 weeks. The legals fees on that action alone are killing us. The prospect for four or five more is overwhelming.
I really don't know what to do. I certainly do not want to ruin our credit, that's the most important thing. I/we need it. In reviewing the options online, a Ch. 11 seems to be the best alternative but I'm unsure how the legal costs and court restructuring plan is gonna go. My wife's business is all in her head...the "formal bookkeeping" as well. 66% of the debt is slpit between two large creditors.
It's the absence of a proper paper trail that concerns me the most. She's been working 12-18 hrs a day by herself because she cannot afford any help (other than my contributions) and I have a fairly successful business (sole proprietorship) that pays our personal bills. If that bank account were to be attached, we're done. The house...gone. The business...done. The very idea has me in chills.
I love her...I've tried to do what I can to help her but the current situation is beyond my ability to fix. My own company is already feeling the strain of the new economy. What's the right move here? Her "company assets" are nill. No inventory to liquidate, her business (and mine) are operated out of our home.
I am confident she can get the bills paid over the course of a couple years but don't know if a restructuring can be extended that long? Help.
TIA
I really don't know what to do. I certainly do not want to ruin our credit, that's the most important thing. I/we need it. In reviewing the options online, a Ch. 11 seems to be the best alternative but I'm unsure how the legal costs and court restructuring plan is gonna go. My wife's business is all in her head...the "formal bookkeeping" as well. 66% of the debt is slpit between two large creditors.
It's the absence of a proper paper trail that concerns me the most. She's been working 12-18 hrs a day by herself because she cannot afford any help (other than my contributions) and I have a fairly successful business (sole proprietorship) that pays our personal bills. If that bank account were to be attached, we're done. The house...gone. The business...done. The very idea has me in chills.
I love her...I've tried to do what I can to help her but the current situation is beyond my ability to fix. My own company is already feeling the strain of the new economy. What's the right move here? Her "company assets" are nill. No inventory to liquidate, her business (and mine) are operated out of our home.
I am confident she can get the bills paid over the course of a couple years but don't know if a restructuring can be extended that long? Help.
TIA