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Home > Ask The Get Out of Debt Experts > I’d like to Reduce My Payments While I’m Laid Off. – Bonnie

I’d like to Reduce My Payments While I’m Laid Off. – Bonnie

Bonnie

“Dear Steve,

I was laid off in November. First unemployment in 30 years, I have a domestic partner that is still employed but our lifestyle was adapted to 2 incomes. I just do not want to have to deal with any repossessions. I am adamantly seeking employment without much luck.

Are there any services out there to help us reduce our monthly payments at least until I can find employment?

Bonnie”

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The Answer

 

Dear Bonnie,

This is a problem with the standard lending contract. It is absolute without any allowance for unusual circumstances. It is simply not flexible enough for you to drop your payments back.

Let’s explore what options you do have for your current situation. How much and what type of total debt do you have?

Steve

Please update me with your answer by posting the answer here in the comments section of your question.

Big Hug!

Id like to Reduce My Payments While Im Laid Off.   Bonnie
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P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Bonnie & Jeff

    Is it possible to file for bankrupty commercially and residentially at the same time? This deal has us in the hole both at the restaurant and at home.

    We have the lean on our home, if they take our house will we still have to make payments we? We are not sure what we will have to pay and we will not have to pay.

    • http://GetOutOfDebt.org Steve Rhode

      Bonnie,

      Yes, you can. But it is two different filings. An incorporated business is a separate legal entity.

      Find a local bankruptcy attorney you like, make an appointment for a free bankruptcy consultation and go ask every question you can think of. The one thing you need most right now are answers.

      Let me know how the appointment goes. Make the appointment ASAP.

      Steve

  • Bonnie & Jeff

    Thanks…appreciate it:)

    • http://GetOutOfDebt.org Steve Rhode

      Bonnie,

      No problem. I completely understand. It just took me till the right time to be at my desk to make the edit.

      Steve

  • Bonnie & Jeff

    Yes – they knew they were in trouble and failed to disclose.

    And yes – we have nothing to lose but take one more shot at making it work.
    And I am going at it with a positive approach and that brings a nice little
    story. After I did the article on the front page (bad picture, I was
    cleaning that day) and they listed our email for people to submit ideas for
    names, I start getting nice emails wishing us luck. But one in particular
    was from a woman I do not know or have ever met………..anyhow she must
    have seen the anguish on my face. And no lie – I have been feeling pretty
    crappy/negative about the whole deal. This nice person drops at the bar a
    gift bag with a piece of chocolate, a cheerful card and a book – “The
    Secret”. I read the book in one day and feel so much better on my situation.
    So I am channeling all negative thoughts out and all positive back in.

    • http://GetOutOfDebt.org Steve Rhode

      Bonnie,

      “The Secret” is a great book. She did you a big favor and that was so kind.

      I guess if they knew it and didn’t disclose it you’ve got a possible legal action against the dealer people. See a local attorney for advice.

      Big hug.

      Steve

    • http://GetOutOfDebt.org Steve Rhode

      Bonnie,

      Last name removed as requested.

      Steve

  • Bonnie Parrella & Jeff Tolley

    When the dealership was open we did wonderful!! We took over in March and the dealership crumbled in May. Taking us down with it. I am losing each month with hopes I can dig myself out. Rumor is another dealersjip may come in but we do not know for sure when and if they will even take the same building.

    We borrowed $50,000 to do some renovations and startup costs. That is where the lien comes in on the house. With the economy and the lien etc we do not have any equity.

    We are changing the name, menu etc and going to try to jumpstart one more time but tourist season is over and winters are hard here. I would not have taken interest in this restaurant if I would have known the dealership was in trouble. I would love to cut my losses and walk if I could. Yes we can do without the camper. He has 2 harleys, one we owq $13,000 on. The other was paid off but we borrowed $10,000 for a deposit on the building that the restaurant is in. We got sahfted along with several other people in the area in reagrds to the mess with this dealership…

    • http://GetOutOfDebt.org Steve Rhode

      Bonnie,

      Since the dealer owners leased you the restaurant, do you think they knew the dealership was in trouble at the time they restaurant to you?

      OK, here is what I suggest. The worst case scenario is that the diner fails. In that case the most logical solution would be bankruptcy since you’ll be buried under a mountain of personal debt and obligations.

      If you have confidence that a makeover will jumpstart the business, try it. You’ve got nothing to lose.

      Either the business will improve and you can get caught up on late payments and the like, or it won’t succeed and you’ll have to toss everything in and go for the fresh start.

      I understand that you are not entering the best season and I think we both recognize that this recovery plan is a long shot but go for it with vigor. We already know the downside and now is the time to probably take a wild risk to saving it.

      Does that approach make sense and sound logical to you?

      Steve

  • Bonnie Parrella & Jeff Tolley

    We do not have $90,000 equity unfortunatley.

    The attorneys compared our debt to others, basically stating we are still in control.

    Jeff and I are partners in the restaurant. long story short…we purchased the business after I got laid off in November. The bar/restaurant is located in Sandusky Ohio on the main drag to Cedar Point Amusement Park and is located right next door to a large Harley Dearlership (Roeders). The problem now id the delaership went bust and drug us down with it for several reasons.

    If you google my name it comes up in all the mess.

    Bonnie

    • http://GetOutOfDebt.org Steve Rhode

      Bonnie,

      I bet when that dealership was open that your place was rocking. I did Google your name and saw your picture. So nice to see the picture of someone I’m helping.

      The article about the hardships you’ve dealt with are interesting as well.

      Let me assure you I’m not snickering and we can work through this.

      So, the restaurant is in your personal names and you is the place able to sustain itself at this point or is it losing money each month?

      What is the lien against the house for?

      Should I assume that you have little to no equity in the property?

      Are you willing to hand back the bike and camper?

      Probably the most important question. What is the goal you want to achieve? Do you want to get out from under this and get a fresh start or try to resurrect something from these ashes?

      Steve

  • Bonnie Parrella & Jeff Tolley

    Our total debt is

    House: $142,000 with a $48,000 lean. We vested money into a reatuarant that we are struggling with as well.
    Credit cards: $9,000
    Car/Truck/Camper/Harley: $66,000

    2 Attorneys (1 commercial/1 residential) both kinda snickered at us.

    • http://GetOutOfDebt.org Steve Rhode

      Bonnie,

      I hate to follow up with more questions but here they are.

      1. So you have about $90,000 in equity in your house?
      2. Glad to meet a a fellow motorcycle rider. Riding will help to keep you sane through this process. Keep riding.
      3. Why do you think the attorneys snickered at you?
      4. So are you a partner in the restaurant? If so, are you invested as individuals or as a corporation?

      Steve

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