Pickle City

I am thinking of going down the bk road myself, still unsure.  Five years ago I started a business with a partner.  Mid 2009 had to shut it down because of the recession.  Both families put up money for the venture, collateral was supplied for bank loan by partner's family.  In the end the company was dissolved- landlord settled, vendors were left hanging, but unable to claim.  Now there is the bank loans to pay and family members to pay.  My outlook is settle the bank loans so houses are kept and forgive the family member debt so we aren't financially burried.  500K of debt to families 300k to partners and 200K to mine.  Unfortunately, my partner's family outlook is to pay the bank loans and family member back.  No personal guarantee for family debt.  Debt to bank 150K, secured by partners family houses.  I am very much interested in solving the bank debt, but investor money is money lost on investment.   Now they want to set-up payment (note) for AFTER the bank loan is paid.  Partners family to receive the difference in family investment (100k).  All totaled I owe 175k, half bank debt (75k) and difference in family debt 100k. 

I feel like s..t.  There is a distinct possibillity that I either pay 175K or screw over a business partner that I am friends with, live in the same city with and share friends with.  I wish my debt was to some soulless credit card company.  I don't know where to turn to next.  No clear answers.  To top it off finding a good job in this market to pay any thing off is near impossible.  I am lucky to have a supportive significant other, place to live and food.   I guess I am lucky I am young(30s), but I feel like a death sentenced has been leveled on me. Anyone with advise?  Thanks for listening, I'll try to keep my chin-up. 

Viper714 Viper714
31-35, M
1 Response Jan 15, 2010

I'm really sorry to hear that you're in such a pickle. I'm also a member of this group, but on a much smaller scale than you are. My advice would be, first, to consult a truly independant, not for profit credit counselor. This may be above their expertise, since they're usually dealing with couples overloaded with credit card debt but, who knows, in your area they may also have some knowledge applicable to your situation. Second, after talking with the credit counselor, I'd talk at length with an attorney, either a business attorney or, preferably, a bankruptcy attorney, and not a young one. They do have years of experience dealing with all kinds of debt situations and over the past three years must have been wallowing in new experience. They may be expensive, but they're not if they're compared with what you could lose going on by yourselves.