Debt Problems
i need help, i know what would fix the problem but i dont think it will happen...?
my mom has a business and i help her. the problem is that its not making money and there is no cash to pay wholesalers, other expenses with the business. its a sole pro. and if she declares bankruptcy they would take her house i believe im not sure. she has a home equity and the collateral is her house. the business has no loans, just debt. she wants out but doesnt know if she can make it out without losing her home. what should she do
Public Comments
- I am not a tax attorney and would strongly suggest consulting one immediately. She may be able to convert her business into a corporate status then declare bankruptcy. That would be the first route I would look into. A good tax attorney could fill you in on the details of that. This isn't the option you would like to hear, but if you're really in a bind, and the above suggestion fails, then consider selling the house (pay off your debt and probably/hopefully profit a little), move into an apt., funnel the remaining money into more secure investments, then declare the company bankrupt. One way to do this would be to have the money put in your name until the bankruptcy was settled. No matter what you do, you need to put the time and money into a good tax attorney. Best of luck.
- the business is her name? not a corporate she can do nothing, beside closing and paying taxes do not forget RSI if she is on corporate just cleanup and close don't talk don't change mail address just make sure she pay taxes and forget rest do fast
