Noname

“Dear Steve,

I live in the Philippines. I have an internet cafe shop business for 3 years now. It is still not in its full operational capacity. I have been getting loans and have accumulated 1million 500 thousand pesos equivalent roughly to $30,000. I want to get out of this situation. Selling the business won’t even pay half of the debt.

How do i pay all these people i owe? I am so desperate already and getting depressed more and more each day.

Noname”

The Answer

Dear Noname,

Well it looks like the business is not a success. The money you have been borrowing has continued to fund a business, that for whatever reason, does not make enough money to pay its obligations.

I know how depressing financial problems can be. The way to resolve this problem is to take some action. Here is an outline for a plan of action I would suggest.

1. Create a comprehensive look at your income and expenses for both you and the business.
2. Make an appointment to go in and meet face-to-face with your lender if you can. Take the income and expense reality with you to show them.
3. Present the reality of the situation to the lender and see if you can’t negotiate an adjusted repayment plan that allows you to meet the payment based on your income.
4. If they are unwilling to make any adjustments to the repayment terms you may have to come to terms with the fact that your business is not profitable and insolvent.
5. Unfortunately the Philippines has a horrible set of bankruptcy laws that provide little relief and are grossly outdated. If you need to find current legal relief that might be available to you, contact a local attorney to ask for legal advice.