Hatrack River Writers Workshop: The Bad: My Banker Suggested Bankruptcy

This is topic The Bad: My Banker Suggested Bankruptcy in forum Grist for the Mill at Hatrack River Writers Workshop.

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Posted by Owasm (Member # 8501) on :

Speaking of jobs or the lack thereof,

I attempted to start a consulting/staffing business a year ago. Took out an SBA loan. Did a nice job setting up the company, then in September, the economy dived. I never got any traction for my idea, people were too cautious with their business money to think strategically.

I made a few oblique turns to generate income... nothing worked.

So since March, I've been trying to find work. I'm an old guy, and no one wants to hire old guys. (BS, MBA, 40 years of experience, but that experience doesn't work like it once did)

I started a website, but it's not producing (nor ever will produce) copious amounts of cash... so I went to the banker who gave me my SBA loan and without a job, he told me that if there was anybody who was bankrupt, I am he.

Did I say my house is underwater?

Woe is me.

Anyone have any advice or experiences to share?

Posted by annepin (Member # 5952) on :

I'm sorry to hear this. Tough times for most of the nation, but it's particularly difficult when it happens to someone we know.

Can you talk to one of those non-profit debt negotiation services? There are many scammers out there, but the legit ones are on your side and can help negotiate down your debts. That's a start, at least. Perhaps the federal government has made some changes about the SBA loans in light of the current state of the economy. I would suggest speaking to a lawyer.

And keep searching for the job--it may take a while but there's got to be something out there for you. Will it change your prospects if you move somewhere?

Maybe it's time to get cranking on the writing?

I'll send good thoughts your way. Hang in there.

Posted by Meredith (Member # 8368) on :

I'm really sorry to hear this. Believe me, I feel your pain. I've been looking for work for two years, now, with no luck. What was supposed to be my retirement savings (what was left after last October, that is) is fast running out. I'm about two months from where you are.

I really hope they're right and the economy turns around. I'm just not sure it will be soon enough. If there's a light at the end of the tunnel, I haven't seen it yet.

I hope you can find a way through this. I hope I can, too. Fingers crossed and keeping good thoughts for both of us.

Posted by Crystal Stevens (Member # 8006) on :

I am so sorry to hear this and definitely feel your pain. Annepin gave you some excellent advice. Is some of your debt in credit cards? IF you must file bankruptcy, I've heard that the new laws can eliminate some if not all of credit card debt. I would definitely hire a lawyer, preferably one well adjusted to handling bankruptcy cases.

We lucked out in just the last week or two when my husband qualified for disability. Our retirement money would've been wiped out around the end of next year, and my paycheck wouldn't have come close to paying the bills. We were in your shoes for almost 2 years.

I know it doesn't mean much (and we were told the same thing when it happened to us), but you will live through this and survive. Check out all your options very carefully, talk with a lawyer, and see what can be done now.

My best to you, my friend.

Posted by Owasm (Member # 8501) on :

The problem isn't in my spending habits... it's not about outgo, but income. So credit counseling (although you have to go through it before you can file) won't help me.

I can say that the decline in my business in the winter got me in to writing. I started polishing up a 108,000 novel sitting in the drawer and sent out queries. (a few responses, but it's gone back to its resting place.) So at my advanced age, I'm trying to stuff a ten years writing apprenticeship into a couple.

Thanks for your thoughts. I certainly hope the economy turns around for all of us.

Posted by philocinemas (Member # 8108) on :

The consolidated loans people get through credit counseling are deadly. Most, if not all, banks will not let you get a loan until the entire debt is reconciled. When I sold cars this was the number two deal-killer (the first was a court injunction for unpaid child support). If the lender suggested bankruptsy, that's not a good sign - they typically don't like people to choose this option. Bankruptsy laws have also changed in that there is usually some kind of pay-back required (as far as I understand it). I suggest you talk with a few different lawyers who provide free consultation (that way you don't get shafted twice).

Good luck with it all. And there is always the option of getting a lesser job (or a couple of them to get you by until things turn around). I wish you the best.