My Family struggles with Debt

iVillage Member
Registered: 07-05-2006
My Family struggles with Debt
11
Mon, 12-07-2009 - 12:56pm

I have so many things to post about this week ladies! I've been sitting on this topic for a few days now because it's painful to talk about. I have been getting calls from credit card companies about my dad. My dad started a business with my uncle about 5 years ago and it is just not doing well in this economy. My dad has made hardly any money this year. last year he only brought in about 20 thousand (if that!) and he's been using credit cards constantly for living expenses but I guess it's finally caught up with him. He emailed me last week about how he didn't know if the business was going to pull through and he was sick of working so hard for no money. He said that he had turned off his cell phone because of the calls from creditors. And so now they have started to call me. I keep on telling them they have the wrong number and that's not a lie either because they have never asked me once if I know who they are calling about. I told my dad to maybe think about bankruptcy. If the business fails then he is going to lose everything. Hundreds of thousands of dollars worth of tools (he's in the woodworking business) because they signed a contract with their shop owner and they have to pay for 5 years and it's only been 3! It's just a mess. I feel so bad about the predicament he's in because I've sooooo been there. And when I was there, my dad was there to help me out but I'm still unable to help him out. I told him about this board and said that if he ever has any questions then I'd post them here.

Another bad thing that happened this week. My husbands father is in deep trouble too and not really of his own making. He has a lot of credit cards (7 or 8) and he had excellent credit but recently he reached a limit where he now has too many credit cards (long story, but has to do with Circuit City going out of business and Best Buy buying all of their lines of credit) so all of his cards lowered his credit limits. His credit score was hit hard when they did that because it affected his debt to credit ratio, and since his credit score took a hit, they also decided to raise his interest rates.

So both of the fathers in my life are now struggling heavily with credit cards. My BIL and SIL are struggling as well. I'm so glad that I got out of that mess before this economy hit!

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iVillage Member
Registered: 08-24-2007
Mon, 12-07-2009 - 1:56pm

Oh Abbie.

Kate


empty purse

iVillage Member
Registered: 01-18-2009
Mon, 12-07-2009 - 3:07pm
I too am so sorry. Just remember how wonderful it will be when all these debts are gone. I have been there so many years and now I only owe for my house and have money in savings. You will reach that goal, as well as, everyone on this board. I kept a journal along the way. I pack it up with my Christmas decorations and the next year I get it out and read it. It is easy to "forget" how being in debt feels. I have paid off and ran my cards back more than once. You will get there!

 

 

iVillage Member
Registered: 08-04-2008
Mon, 12-07-2009 - 3:09pm

Could it be time for your father to talk to an attorney for BK?




iVillage Member
Registered: 03-27-2005
Tue, 12-08-2009 - 9:37am

((((((((((((((((Abbie)))))))))))))))

iVillage Member
Registered: 07-05-2006
Tue, 12-08-2009 - 9:57am

http://www.warrickshirewoodcrafters.com/Index.html

This is what my dad does. He's really an artist of wood and a one of a kind. He designs everything himself although he never went to architecture or design school. His business partner is my Uncle and the one that controls all aspects of the business and they are not getting along at all well. In fact, my uncle just had a huge fight with him and asked him if he was in 3rd grade! It wouldn't surprise me if after this business dissolves, they never speak to or see each other again. Their website is 'so so'. I've seen much better, but they still get their high end clients. I definitely think that my Uncle will take my dad to the cleaners over this bankruptcy. My dad is going to lose all of his tools that create this artwork. What is my Uncle going to lose? Nothing. In fact, my mother just confided in me that they took out another business loan in which my dad had to put up all of his tools as collateral and I think my Aunt and Uncle intend on putting all of the personal debt they have acquired because of this failing business on the business loan and then wash their hands of everything. Another thing that has come up is that my Uncle somehow thinks he could possibly run this business without my dad. My Aunt even went so far as to tell a client that my dad wasn't their designer. It's just a family mess and the fallout will be extremely messy. They don't appreciate that my dad is an artist and he thinks like an artist. My dad is very gentle and friendly. My uncle seems to be bloodthirsty!

I truly hope that my dad can just get out of this with a few tools and no debt. My brother quit the business a few years ago and now he does simple jobs and is starting to make a decent living. I know that my dad will be sad to lose the ability to have free reign to create his art, but I think he will enjoy his free time even more. He literally spends every waking moment working and he's 55 years old with nothing to show for it! I mean, can you believe that he only made 20K last year and this is what he was creating?

I'll let you know as it unfolds, and I will definitely advise my dad to see an attorney and figure out exactly what is going to happen if this business fails drastically!

iVillage Member
Registered: 05-14-2008
Tue, 12-08-2009 - 11:07am

You are right, your father's work is beautiful.

iVillage Member
Registered: 08-04-2008
Tue, 12-08-2009 - 12:44pm

He has done BEAUTIFUL work.


Just some ideas - his website is not coming up well in search.




iVillage Member
Registered: 05-20-2005
Tue, 12-08-2009 - 12:56pm
Many times, "tools of the trade" can be exempt in a BK proceeding.
Wedding
iVillage Member
Registered: 10-01-2009
Tue, 12-08-2009 - 10:02pm

ALL I CAN SAY IS WOOOOOOOOW


iVillage Member
Registered: 07-05-2006
Wed, 12-09-2009 - 7:46am

Hi Marie,

I sent your responses to my dad. He wrote me back and said that he found them really interesting and forwarded them to my Uncle. My dad would love to speak with you. I have your email address (the marketingvirgo one), but I don't want to give it to my dad without asking you first. My dad and Uncle started off this business with such hope and momentum, but now it just seems to have fizzled. I hope your suggestions will be a breath of fresh air to them and make them realize that they need a new approach.

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