Your views on bankruptcy
In “Life after bankruptcy,” an entrepreneur tells his story of filing for Chapter 13 protection after his business faltered. He went on to create a successful startup. What are your views on filing for bankruptcy when a small company struggles? Make a post here.
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DiggIs the blurb about living debt free a reference to Dave Ramsey? I own a small Dallas-based business as well and have learned that Dave’s principles apply to business finance just as much as personal finance. Would be interested in meeting this entrepreneur to discuss strategy and for general support.
Personally, I have feelings of shame about the whole thing. I am in a similar situation due to the high fuel prices and coupled with being in the trucking business, it only equals pending DISASTER. Well, here we are in Sept 2008, and I just left my attorneys office after he told me there was nothing he could do about my situation under chapter 7 or 13. So as far as this guy in Texas goes, his bankruptcy was under the old rules. The new rules really put the screws to u. My attorney was honest enough to inform me, that, since I am still earning more than the above average Floridian, Doesn’t matter that I can’t pay my creditors, that I will have to file a chap. 13 and I will have to sell my tractor, doesn’t matter that, that is how I make my living, I will have to sell my 11 year old pick up (the only personal vehicle we own) It’s worth more than 1k, we own no big screen t.v’s, no harleys, jet ski’s, 4 wheelers, etc. Most of my debt is due to the fuel prices and housing crunch, yet the Government bails out Bear Sterns and AIG and fanny mae and freddie mack. Then the attorney informs me that I have to take a 7 page means test, the court uses the definition established by the IRS to determines how much a family should spend on fuel, food, clothes, etc. Since when does anyone in Government live in the reality of America? The conclusion that my attorney had came up with was to buy an answering machine, and since I am self employed, the creditors can’t garnish my wages (ha ha) and… Get the Picture. You can thank that Idiot that Senator Obama selected for his VP running mate, he’s from Delaware, corporate home to most of the nations banks and he helped to spearhead the new bankruptcy legislation (because of the lobbying and campaign contributions of the same banks) which now is screwing over the little guy. I thought the Democrats were for the little guy? I will pull out of this mess some how with out the help of the damn government. Thank God for the 2nd amendment.
Lock and Load
Our first business is crushing us. It is a beautiful spa, we created
together, my husband and I. No expense spared to create an environment like
this. Clients love it.
The weight is just too heavy. We are tired, and over whelmed.
Problem is, our new location is ideal, and there is no debt (we learned what
not to do) and is going to propel us to the future. We have had so much
publicity lately about our “success.” I don’t think I would ever be able to
come out of my home and meet people on the street knowing we filed.
So discouraged. You were very brave. I almost think I would rather starve,
than to have people know…
Vickie
My husband and I are currently in bankruptcy. Our story is like so many today. We went from making the high five figures to nothing. Our companies went overseas. Good news is that we are Now back on track and making close to what we were then. However, after trying to get caught up and doubling on payments..only watching our credit card balances get higher, not lower. I feel as we litterally threw thousands away to avoid bankruptcy. We have no other option. It is heart wrenching to go through bankruptcy. We are good Christians who believe in paying our debts. However, our creditors quit working with us. Now, our good name is bad on paper. It hurts. Why can’t people get second chances easier? Why is that we look as if we were bad people because this events happened to us?
I am a small biz owner with 1.5 mill in debt to SBA w/ 10.5% rate anyone know a good BR attornery in the north Tex area. Need help soon
My company is about to have to enter Chapter 11 protection, and most likely I will have to file for Chapter 13 personally as well while I figure out how to get my business back on track. It is not something that I relish, but with my customer stream getting obliterated through industry consolidations, economic downturns, and the economic effects of Hurricanes Ivan and Katrina, I really don’t have any choice. You want to do the right thing in terms of dealing with your creditors, but at the same time you have to survive.
What is a shame is that some people or companies take this lightly or actually plan this. Most, however, are so adversely efffected by this, both mentally and financially, that it ruins lives. Unfortunately, I had to declare both Ch 7 for my business and myself about 4 years ago, even though I had a thriving business for 20 years, and have expertise in finance. Most creditors got payed about 84% of what they were owed. I am now a small business consultant and a Certified Fraud Examiner and use my experience to help others. I find that helping others brings me happiness.
I am currenrly in chapter 13 bankruptcy in which I filed in 2004 I am currently coming out of it real soon Thank God, I was even able to secure a car loan from my bank last year with know problem , I am currently in the process of starting up a new buisness . I filed chpt 13 because I was fired from my job back in 2004 and was in debt, they would not let me file a chpt 7 but only a 13 I dont regret it at all I had to do waht I had to do. Now I am gettig back on track finacialy
I think when I comes to over a million dollars in debt, with a family to support, a guy’s gotta do what a guy’s gotta do. So I applaud him for taking the intitiative to dig himself out of his hole.
I filed bankruptcy in 2004. Have a small business and although my lawyer said that once the bankruptcy was discharged I would have no problem getting credit. My bank won’t even give me a line of credit for $1,000.
I have to wait I guess the 7 year period until I can get credit. My small business can’t grow. No cash.
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We too are good people who are currently in bankrupcty and feel horrible…we also had no other choice and our creditors who gave us more and more would not help us when it came to our short comings…we our now different people…and thank God for all we have..and hope we never need a credit card again!!!!