Shocked by business debt revelation
Find a Conversation
Shocked by business debt revelation
| Mon, 01-24-2005 - 11:19am |
Five years ago my husband quit his job to start his own business. I wasn't very happy about it, but he didn't discuss it with me beforehand, he just came home one day and announced it was a done deal, he'd given his notice. Whenever I've asked him how the business is doing, he is evasive but since he brought home a (small) paycheck and had clients, I figured he was at least breaking even.
He accidently left a P & L statement at home which I found and was stunned to see he was losing a great deal of money. I confronted him and he admitted he is deeply in debt. He has no plans to give up his business. He says he can slash expenses and start breaking even. Of course this does not address how he will pay off the debt---which is mostly on credit cards, of all things! He didn't want to work with a bank when setting up his small business.
I am 54 years old and we have 2 teenage kids, no savings and almost no retirement, everything was poured into this business. I work part time(not for him)
I feel extremely overwhelmed. My husband says if his company goes bankrupt, it will be the corporation, not us personally, but I am still sick with worry.
If he dies, will I owe all that money? How can we retire with a huge huge debt?
Is there any resource I could tap into for help/advice?
He accidently left a P & L statement at home which I found and was stunned to see he was losing a great deal of money. I confronted him and he admitted he is deeply in debt. He has no plans to give up his business. He says he can slash expenses and start breaking even. Of course this does not address how he will pay off the debt---which is mostly on credit cards, of all things! He didn't want to work with a bank when setting up his small business.
I am 54 years old and we have 2 teenage kids, no savings and almost no retirement, everything was poured into this business. I work part time(not for him)
I feel extremely overwhelmed. My husband says if his company goes bankrupt, it will be the corporation, not us personally, but I am still sick with worry.
If he dies, will I owe all that money? How can we retire with a huge huge debt?
Is there any resource I could tap into for help/advice?

Pages
You may want to consult with an attorney that specializes in corporate law. Are you sure the business is a corporation?
I know it must be difficult for you and unfortunately I can't answer any of your questions. I can, however, offer you prayers and support. Most of the ladies here are here for support.
Good luck and let us know how things go.
Kellie
I am sorry you are so overwhelmed right now and with reason. I wish I had advice to give, but unfortunatly I know zilch about corporate law.
Just wanted to let you know that I'm hoping the situation betters itself for you.
I doubt very much he would let me do any of the bookkeeping, or even open them up for me. All I know to do is try to save money on the side, but it is very hard when we are living on a shoestring as it is.
Maybe I need to talk to a bankruptcy attorney just to get info (sigh) More expense!
Thanks for the advice firstamendment.
I appreciate so much your kind thoughts. I'm sure his business is incorporated..I know it is. But how a bankruptcy would unfold, I don't know. The attorney/accountant who does our personal income taxes also does his business taxes. Maybe I could talk to him, if he doesn't invoke some kind of client/privledge.
My Mom wasn't responsible for the bankruptcy or the debts after my Dad died. BTW -- it really sucks to realize this when someone is terminally ill.
Just make sure you weren't listed as a coapplicant or authorized user on the credit cards. You should be able to tell by pulling your credit report and checking for anything you do not recognize.
You should also consider how are you filing your taxes? Do you file jointly and is the business tax "passed through" and to a schedule C attached to your 1040? If so then you could be liable for the taxes.
My DH started his own business and it took a few years for us to finally start breaking even. You can try to get a SBA loan. If your DH has a business plan, he can get the loan.
Good luck!
Sandra
Pages