My husband and I have a construction company. We did work for developers who did not pay. We signed personal guarantee with a vendor. Our attorney is working out a stipulated judgment with the vendor b/c we really have no defense on this open account, as we did use the concrete and we did guarantee payment. The whole experience has left us struggling trying to get back on our feet to recover from the fact that we did so much work and owe so much money, for which we have not been paid.
What effect will a stipulate judgement have on us. Should we consider filing bankruptcy to alleviate this debt. It’s over $100K.
Maybe you should file bankruptcy. Really the question comes down to if there is a reasonable expectation you can rebuild the business and pay this judgment at the same time. If that is not a reasonable expectation then the next step would be to explore bankruptcy by talking to a local bankruptcy attorney and discussing your situation with the attorney.
Bankruptcy was originally designed to allow people to take chances, especially business risks, and if the enterprise failed then there was an exit that allowed the business to get a fresh start. If an airlines can use it and be applauded for filing bankruptcy, then you can too. If you want to know more about the origins and history of bankruptcy, listen to this and read this.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.