I’m contemplating closing down a business and suffer the loss of 200k of my currency (about usd 50k). Redditors here talk about success stories, how about losses? What’s your biggest loss?
I’m contemplating closing down a business and suffer the loss of 200k of my currency (about usd 50k). Redditors here talk about success stories, how about losses? What’s your biggest loss?
Ok, here goes:
I shut down my business in January 2022 due to insufficient cash flow. past due receivables had increased to over $50k. After lending the business money in Nov and Dec 2021, I decided on Jan 22 it was time. I hired an attorney to legally dissolved the business.
Consequentially, I had a SBA Loan (Federal loan) bal of $160k US, and 2 credit cards totalling $27 k plus a loan from a family member for $20k.
Personally, I was liable for $207k US. I tried to negotiation a compromised settlement with 3 creditors. SBA compromise was 80%. Which didn’t help much. One of the banks had written off the debt and had no interest in a settlement.
We hired the attorney who dissolved the business, again, and filed personal bankruptcy. The mental aspect was difficult, but once we came to the realization that we could either pay off everything from our retirement account or utilize the bankruptcy process.
It was the best decision and easiest process. Given the fact we were a small business operating as an LLC with excellent bookkeeping and accounting records, the process was very straight forward. Fortunately we’re in a state with a lot of “consumer” protections; no risk of losing our house, cars or retirement money.