what should I do...Help please

[md2277]

hello forum, new user here.

I run a small business and over the years like many I came across some debt. When I first started my business I had a hard time getting a business loan so I had to start out a line of credit on my house but under the business name an LLC. It has been 4 years now and I'm trying to move the money to a business credit card but with out a personal garantee. Well I cannot find such a thing. I was informed by my lawyer to get a credit but with no personal garantee case in case I have to walk away from my business my personal credit will not get hurt since I have a LLC.

Does anyone have any sugesstions that could help me. I would really be thank full.

Thank you in advance.

MD

[no_it_all]

If your business is four years old and can not stand on its own two legs, you should dump it before it brings you down. I am amazed at the number of people that go through the trouble of an LLC or Subchapter S and then personally guarantee the loans...If you are under-capitalized you shouldn't start a business.

[SinkingFast]

If your business is four years old and can not stand on its own two legs, you should dump it before it brings you down. I am amazed at the number of people that go through the trouble of an LLC or Subchapter S and then personally guarantee the loans...If you are under-capitalized you shouldn't start a business.

Everybody has their share of "Woulda, Coulda, Shoulda" here.

Obviously MD keeps hoping his biz will turn a corner, take off, and fly on it's own. Just hasn't happened yet.

Until Banks or Small Business Lenders feel your company can stand on it's own merit, your not gonna get financing without personal backing.

If your business debt is causing you personal financial strain, you may consider, at this point, letting the business die a natural death. Then you'd be free to consider personal financial options for yourself.

[md2277]

"If your business debt is causing you personal financial strain, you may consider, at this point, letting the business die a natural death. Then you'd be free to consider personal financial options for yourself."

---------------------

What is it that you mean here. What I'm thinking of doing is tranfering all the money to 2 credit cards and then keeping up with it as long as I can then then just default on my business cards. My wife has great credit, we own 2 very nice cars (payments of course) we just built a house. So I can run with her credit for the next 7 years until I build mine back up. But I don't know if this is the right way to go, to be honest I don't really care about my personal credit right now because I have my wifes. We both work full time this business is a side gig (online business) in the dream of doing it full time. Is this an option that I have?

MD

[SinkingFast]

There are people here who've gone thru what you're going thru. Maybe one of them will chime in with a business perspective for you.

What I know about business BK I know from having read it here by another posters,.........

One guy that used to post here had his own construction business. Not doing so well. So he went for Consults with attnys about what to do. He too had backed his business with personal guarantees, translated personal Lines of Credit/CC's/Loans, as well. He kept getting the same advice over and over. New Law Business BK was much worse than New Law Personal BK. The attnys advised he let the business die a natural death and then file personal BK.

Depending on how intertwined you and your wife are credit wise, you may be able to file personal BK and not even affect her credit. If you don't own property jointly, have joint banking/savings/investments, don't hold CC's jointly, then you could file solo and not even affect her credit. It would just be your credit affected only.

You could Consult with attnys and see what advice you may get from them. Consults are generally free and you can learn a lot. Each attny will have their own perspective about how you might proceed.

[no_it_all]

Well, since this is a bankruptcy forum, most of the posts deal with ah, bankruptcy. If you are looking for a loan that you can walk away from when your business goes belly up you should try a business forum...BTW, in your first post you stated that you can't get a business credit card without your personal guarantee..Soooo I am not sure even what you are asking advice on..Maybe if you sell one of the very nice cars (payments of course) you can have money for your business...just a thought...

[SinkingFast]

Well, since this is a bankruptcy forum, most of the posts deal with ah, bankruptcy. If you are looking for a loan that you can walk away from when your business goes belly up you should try a business forum...BTW, in your first post you stated that you can't get a business credit card without your personal guarantee..Soooo I am not sure even what you are asking advice on..Maybe if you sell one of the very nice cars (payments of course) you can have money for your business...just a thought...

Good catch there, NIA.

MD,.......... People come here to learn and support one another thru the BK process. We are not here to teach or learn fraudulent behavior, or trade secrets to cheat the system.

Most of us here did everything absolutely possible to pay our debts before we went flat broke and couldn't do it any longer.

Hubby and I sold a nice car, and my jewelry, and everything else of value we had, to pay debt. So NIA's suggestion is a good one in my book. Not something we wanted to do, but something that had to be done.

BK is serious FEDERAL business! Maybe you need to do a gut check, forget about what the neighbors might think, take a look at what you have that you could sell, and pay some debt. Loosing a few things now sure beats the hit BK will place on your Credit for years to come.

[Rover]

MD2277,

I agree that it would be a smart business move to transfer your secured debt to unsecured business debt.

But why restrict yourself to credit cards?

Try the Small Business Administration. It may be possible to get an unsecured loan through the SBA. Do an Internet search on something like "small business loans". If you keep trying, I suspect that you'll find a way.

[md2277]

jfal[QUOTE=SinkingFast]Good catch there, NIA.

MD,.......... People come here to learn and support one another thru the BK process. We are not here to teach or learn fraudulent behavior, or trade secrets to cheat the system.

-------------------------------

"Fraudulent behavior" trade secrets to cheat. What the hell are you talking about. I'm hear to learn what I can do in the future with my business. And for you to say don't worry what my neighbors, listen here I'm not going to sell my "NICE CAR" like you did ok, I'm going to work on my business. I'm not going to sell my "NICE CAR" because personal assests are personal and business assests are business. I would think you and NIA would know that.

If you are not going to help me with my questions than just keep your dam opinions to your self!!

[down&out]

listen here I'm not going to sell my "NICE CAR" like you did ok, I'm going to work on my business. I'm not going to sell my "NICE CAR" because personal assests are personal and business assests are business. I would think you and NIA would know that.

If you are not going to help me with my questions than just keep your dam opinions to your self!!

[Rover]

Hey Folks,

I know you are just trying to help in your own way, but the replies to MD are way too judgmental IMHO.

I don't believe that MD is trying to find a way to commit fraud. He is asking a basic and important question that probably affects many people who own small businesses.

One of the benefits of incorporation is supposed to be a separation of one's personal and business assets and liabilities. It's frustrating for the owner of a closely-held corporation that a big organization like, say, United Airlines can go belly up leaving creditors and employees on the hook for billions of debt and broken promises, and the officers of United get away with their personal assets untouched. It's not fraudulent for a small corporation owner to ask if he can somehow get the same protection. That just makes good business sense.

With regard to the purpose of this forum, while it's called the "Bankruptcy Forum", it appears to me from looking at the forum sections and many of the posted threads that it's much more than that. It's really a forum about debt and credit management, and there's nothing wrong or immoral about some one trying to manage their debt and to avoid bankruptcy.

For what it's worth (and its probably not worth much), I would prefer to see threads stay with objective replies to questions and not wander into the realm of trying to judge the motives of the person asking the question. Judging and moralizing don't really help anyone.

Hope this reply wasn't too judgmental.

[no_it_all]

MD....Please read your original post...You claim you have "some debt" and would like to figure out a way to move your personal debt to your business LLC so you can walk from it. In the next post you said "I don't care about my credit" because you can use your wife's..OH, then you mention that you do have a really nice house and a couple of really nice cars...both with payments......Your business is a "side gig" ....What <exactly> do you want to do? Run a business or pre-plan for going belly up ???

[kcj]

I'm not going to sell my "NICE CAR" because personal assests are personal and business assests are business. I would think you and NIA would know that.

I wouldn't count on that. If you wholly own the business, business assets ARE personal assets. And since you as much said that you plan to default on your business credit, if in fact you could get any, you aren't exactly making yourself look honest.

[SinkingFast]

[QUOTE=md2277]jfal

Good catch there, NIA.



MD,.......... People come here to learn and support one another thru the BK process. We are not here to teach or learn fraudulent behavior, or trade secrets to cheat the system.

-------------------------------

"Fraudulent behavior" trade secrets to cheat. What the hell are you talking about. I'm hear to learn what I can do in the future with my business. And for you to say don't worry what my neighbors, listen here I'm not going to sell my "NICE CAR" like you did ok, I'm going to work on my business. I'm not going to sell my "NICE CAR" because personal assests are personal and business assests are business. I would think you and NIA would know that.

If you are not going to help me with my questions than just keep your dam opinions to your self!!

Sometimes you gotta make hard choices in life.

For us, it was keep the nice car or take on an IRS Tax Lien. Do a little internet research on that and see if you find that appealing. It's not. Nobody will loan you money for anything. We coulda kept the car thru the BK. But, for a person coming out of BK, the first thing you need to do is reestablish some form of Credit. Rebuild. You cannot do that with an IRS Tax Lien against you.

Your statements indicate you aren't willing to entertain the thoughts of loosing your THINGS to pay your bills. You want to maintain your current lifestyle, keep all your possessions, remove your personal guarantees on your business debt, and then let the business go belly up.

You cannot always have your cake and eat it too.

Maybe if you part with a few of your nice things, and let the business die a natural death, you won't even have to file BK. Business or Personal.

BK is serious FEDERAL business. Not to be entered into lightly. It's a step of last resort. And by your comments, you aren't even close to the "Last Resort" phase yet.

Oh, and ah,......... You cannot pick and choose who posts comments. You stick it out there, you gotta be prepared to take on all comers. Good and bad.

[no_it_all]

<snip>What I'm thinking of doing is tranfering all the money to 2 credit cards and then keeping up with it as long as I can then then just default on my business cards.

Sounds like a fantastic business plan.

My wife has great credit, we own 2 very nice cars (payments of course) we just built a house.

Yippie!! What kind of cars? Asian or European?? How many square feet? Did you get the stainless appliances??

I can run with her credit for the next 7 years until I build mine back up.

I hope she is there for you

But I don't know if this is the right way to go, to be honest I don't really care about my personal credit right now because I have my wifes.

Yes, as you said, you can "run with her's for 7 years" Glad to see you already researched the SOL on reporting to Credit Agencies.

We both work full time this business is a side gig (online business) in the dream of doing it full time.

Dream....excellent choice of words there.

Hey, don't shoot the messenger...I didn't write this stuff!

Yeah, I can see how some of the replies incorrectly interpreted your posts...What I am confused on is this: Why would someone looking for funding (for a 4 year old business no less!!) go to a bankruptcy forum for advice ????? Please explain that to me....Seriously, maybe I am just reading this all wrong. I have a hunch English is not the first language of the poster so maybe that is the problem???