Ask The Get Out of Debt Experts Business Debts

How Can I Deal With My Business Debt to Get Ahead? – Ron

“Dear Steve,

I have past bills I have not paid for about 5 years, now creditors have been calling my fiancee’s home where I live as well. I am currently unemployed and just started a business to make ends meet. Business is real slow with very little coming in. I also pay child support. What is the best way to get these past debts paid off and build my credit back up? I thought about chapter 13 but that leaves a negitive impact. Creditors bills have doubled or tripled over the years. Cannot afford to pay them anything. Would like to find a way to build my credit back up for my business as well. Can creditors go after the business assets? If so what can I do to protect myself? What can I do to reduce the bills? One has offered to settle for half, I don’t have that kind of cash.

Ron”

Dear Ron,

Starting your own business can be a blessing, or a curse. Depending on what type of business you launched, without the proper access to money through business credit or sales revenue, the outlook for success here may not be rosy.

Since you are a small business I am very confident these debts are your personal responsibility. That means that your options to work with these creditors is either to negotiate with them and try to establish a payment schedule you can meet or consider personal bankruptcy to get a fresh start and attempt to place the business in a situation where it has a greater chance of making it.

Before you worry about building your credit back up you’ve got to first tackle the underlying debt issue that is dragging you down. once you do that then rebuilding your credit is going to be a relatively easy thing to do.

You’ve expressed concern that creditors may go after business assets but what assets do you have? And is the business a corporation or LLC and those assets are owned by the company?

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Source: I Am Currently Unemployed and Just Started a Business




About the author

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.

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