Should I wait to file?

[darkyetnotso]

I'm hoping to get some opinions on if I should file or wait... I'm 22, 40k in debt(cc mostly, I've been living off that while going to school), I have some student loan debt but I did the deferment for 12 months, so I should be fine for now.

My situation is a little interesting because I quit school last June to work on a startup with one of my friends. Basically, I quit my job and started living off my savings and money from the car I sold in the summer.
I'm concerned about my company, I have about a 30% equity stake in the company, which is worth a minuscule amount at this point, but I don't want to lose it if I file bankrupcy.
I guess I'm in no hurry to file, I can ignore the calls from the creditors for a while(I stopped paying my cards 2 months ago).

How long should I wait before I file, is there a point when I NEED to file, or can I just live with the debts for a few years until I start getting enough income from my company?

Thanks!

[jribe]

I'm hoping to get some opinions on if I should file or wait... I'm 22, 40k in debt(cc mostly, I've been living off that while going to school), I have some student loan debt but I did the deferment for 12 months, so I should be fine for now.

My situation is a little interesting because I quit school last June to work on a startup with one of my friends. Basically, I quit my job and started living off my savings and money from the car I sold in the summer.
I'm concerned about my company, I have about a 30% equity stake in the company, which is worth a minuscule amount at this point, but I don't want to lose it if I file bankrupcy.
I guess I'm in no hurry to file, I can ignore the calls from the creditors for a while(I stopped paying my cards 2 months ago).

How long should I wait before I file, is there a point when I NEED to file, or can I just live with the debts for a few years until I start getting enough income from my company?

Thanks!

It would help to know what state you're located in. And how your business was formed: LLC, Partnership, Corp etc. Creditors can get judgements against you in most cases- which can include wage garnishment. It will certainley ruin your credit- so forget getting any new business credit if you need it.

I would recommend consulting with a BK lawyer that knows about small businesses. He/She can offer some good advice.

It doesn't sound like you have much in the way of assets- except the company and future wages.

Good luck

[darkyetnotso]

State is Washington, and the company is an S Corporation. I don't get paid a wage at this time, its basically 3 guys working out of their garage..