We Owe $178,000 On A Failed Business

Brought to you by the EveryDollar app. Start budgeting for free today. My husband and I are overwhelmed financially. We're having mortgage, vehicle payment, credit card debt, and the biggest part is the large SBA loans. They sent it to Treasury. We're considering bankruptcy and have also talked to some attorneys. They suggested bankruptcy through Chapter 7, but we just wanted to see what is our best option. What is our best choice we could do first? Well, asking a bankruptcy attorney if you're bankrupt is like asking a dog if it's hungry. A hundred percent of the time the answer is yes. Okay, so let's start with that presupposition. And so you have a business that Yes, so the business is under my name. And then we like switch it to my husband's. And after that, like, it's just not going right with the business. So it's really hard for us to pay it off. Has it been closed? Is it closed? The business that was under my name? Yes, it's closed. That's what the SBA loan was for. Yes, that's for the SBA loan, correct. And how much do you owe on the SBA loan? $178,000. And do they have a lien on your home, I assume? No, no, because I don't know. Like, the attorney that I talked to, they said it's pretty much considered kind of like a personal loan because I was not an LLC or corporation. Yeah, but they usually take a second mortgage position on your house. You're sure they don't have a lien on your home? No, no, because at that time, we did not have a home we were renting. And you were able to get a mortgage after the fact, how much do you have to pay every month on this SBA loan? We were paying 584 each month for 30 years. But like I said, we we weren't able to pay it off. So we stopped and it's in treasury now. Yeah, what kind of what kind of business was this? It's a like, carving, sand, gravel, and dump truck. We have two right now that are right now working, but like I said, the money fluctuates. Sometimes there's work, sometimes there's not. You said you had a dump truck and what? Yeah, it's an end dump truck. So it's like 18 wheelers. Okay, where is it? You said it's still in operation? Yes, that my husband's the one that's doing it now, the operation. And so what is owed against that other than the SBA loan? Nothing? No, no, because we paid them off. We paid off the so what is the what's the what's the 18 wheeler rig worth? Let me have it right here. Okay. So there's a Peter bill is that I looked it up and it's like 30 grand was worth and then we have a front liner. It says it's 20 grand, but that one is not working. And then we have a let's see, what's wrong with the one that's not working? How much would it take to repair it and sell it off? Maybe? Maybe like 10 grand or more to repair it. What other equipment have you got other than those two tractors? We also have what the other ones are like just under his name. They're not on their mind. But we have also a front liner and that one. We got it for 550. But I guess the book says something else. I don't I don't remember how much my husband said. What does it say you can get for it? I don't I don't like didn't like he told me but it just didn't stick in my head. I was just did you say 550? What? Yeah, yeah, because they it was broken down. So he fixed it. My husband's manual. He's $550. No, $5,500. Oh, got it. Now, if your husband is good at if he's good at fixing, can he repair the one that needed the $10,000 repair? Can he do that with his hands? Because you'll have to get like, I don't know if it's an engine or I don't know, none of that stuff. But it'll be like seven. What else do you want to get? We also own 2018 Armalite and that's the end up that's worth 31,000. And then we have another trailer that is worth like 60,000. That's how much we got it for. Okay, so there's a lot of equity here that if you sold these things off and got a job, you could pay your bills. Yeah, but like I've been trying to do the math and stuff. And we also have credit card debt. How much credit card debt do you have? My husband has 12,000. I have 6,000. That's not very scary. The credit card. How much do you owe on your car? Okay, so there's one car is 50,000. And that one he he needs it for the semi trucks like to haul everything. And he also has another side gig that is doing landscaping. So he needs that one. And then we have I have it right here. What kind of truck is it? Is it just like an F 150? Like a Okay, so Daisy, let me stop you. I I've been where you guys are. And I know how scary it is. Okay. But when you are calling about bankruptcy, you don't get to say I have a side hustle with a $50,000 car. You sell the stupid car and you get a job. So what I would do if I woke up in your shoes is I would sell everything you own. And then you're not bankrupt. And get it get a job. He's got a CDL get a job driving a tractor trailer. And you get a job. Have you got a job? Yes, I also work and I have two jobs. Okay, what do you mean? I'm a paraprofessional and I make 26,000 a year and then I work in another job and that's like maybe like 3000 to 5000 on the side because like I do sometimes weekends and then the summer time I work more too. All right. And so if he's driving truck and you're doing those things, whatever the sale of all of these items doesn't cover you can work your way out of and so I got 50 I got 80 I got one I got 90 I got one I got 150 worth of crap to sell and sell the stupid car he's got all you guys just justify buying anything you want to buy on payments and call it I'm in I'm in debt but I can't sell it because I'm in business no your business is broke you went broke you lost everything and so you get the opportunity to start fresh with nothing by selling everything so when treasury calls and you owe 178 if you offer them 150 as settlement in full because I've got that in the bank because I've sold off all this crap they'll take it and you won't be bankrupt anymore you're not bankrupt you're just trying to hold on to everything yeah that's for me uh look I have told my husband I don't I don't care I could sell everything like I don't want to listen honey they're going to take everything from him if he doesn't sell it and give it to them that's how this works including bankruptcy when you file chapter 7 bankruptcy in Texas you don't get to keep 180 thousand dollars worth of stuff they don't that's not how this works and I'm going to blow off all the debt and keep all this tractor trailers no they're going to sell all that at a bankruptcy auction and apply it towards your debt so you might as well do it and not file bankruptcy create your free every dollar budget today the simplest way to budget for your life