Was wondering if anyone out there has been through a 'new' Chapter 7. I haven't filed yet, talked to a lawyer but through the 'mumbo-jumbo' , 'jumbo-mumbo' lawyer speak and the sunshine pumping, I don't know what to expect.
Bought this carry out pizza shop a few years ago and since then Ford left town, Marconi Industries closed, a bunch of smaller businesses have left also.
The only thing we seem to have plenty of now is crime. Got the place up with a realtor but everybody is afraid to come to this town.
So, bankruptcy may be inevitable. Anyone with advice or experience with this would be greatly appreciated.
No charge for the songs....
The people you owe will be happy to bargain for a settlement. You may get a 50% discount on your balance owed, with a full forgiveness of the rest. Everybody wins. You just need to talk with them.
I have suffered due to the filing. It took me longer than necessary to build back my standing. But, along the way, I paid cash for things, and elevated my standard of living.
Call your creditors tomorrow, and tell them you are broke! Ask them if you can work off your debt! Stay away from lawyers. They take a cut, and nobody wins but them!
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In the meantime, you can always try selling cigarettes on the side since they'll be illegal soon anyways...just hve your business card say you're a humble baker : )
What city are you in? Can you post your menu? (not that has anything to do with anything, but it's dinnertime!)
Turn it into a check cashing business....I'm serious.
You could hire all the East-Asian Indians in your town and open up a Dell Computer call center.
All I can offer is sympathy and encouragement. I had a business that failed, more from my errors than external circumstances. It didn't kill me, and I built up a new life that is better than what would have been if I'd succeeded.
If you own the store, close the pizza shop and lease it to one of the following, or something similar:
--pawn shop
--tatoo parlor
--biker bar
After a year or so, try and sell them the property, or sell it to them in a contract for deed type situation.
If you owe debts related to the Pizza shop, negotiate with creditors. Tell them you are closing down, the equipment is their's back, etc., and that if they don't accept a percentage of what they are owed, they will have to file proof of claims with the bankruptcy court.
As far as your own employment, you'll just have to find something else to do -- there or some place else. If the rent on the property covers the mortgage, you are OK there. If not, let them foreclose. Just make sure you don't end up with a deficiency judgment (meaning you owed more than the property was worth).
I hate to tell you, but if you had sought legal advice prior to going into business, you'd be much better off now. No, you can't do much about your business base leaving town, but you could have incorporated. There, you close down, let the mortgage company know where the keys are, and leave. I know that in many situations, businesses like that still have owner's personal guarantees on that, but you'd still be better off with a few of those "dings" on your credit report than full blown bankruptcy.
Good luck.
Oh man. You squeezed between Congress and a hard place. Is you incorporated?
Beats me......I dunno.
If you truly know you are not going to make it start taking cash. Only put enough in the bank to pay the employees. The day you talk to your attorney don't pay another bill. Get all the cash possible. The day they close the joint have another place to move where the prospects are better. You are self employed. It will be hard to get a job or unemployment. Your one obligation now is to yourself and family. Don't make any others.
I feel your pain-just went through a bad divorce-long story.
Check out Dave Ramsey-he has some decent and realistic ideas on this type of thing.
I don't advocate all his solutions, but figure information may be your most important resource right now
Call Bill Manchee in Dallas....He will give you some good advice...
I'm sorry to hear about your difficulty. I've liked your work here on FR. It's sad that decent people get hurt b/c jerks and creeps "take advantage" of things set up to help/protect people whose difficulty is no fault of their own...
In California that means you can accept food stamps.Might be the same in Ohio.The pizza places here that do this, kick ass because of this ability.
Do you pack your lunch or walk to work?
Bear with me here.
You bought a pizza shop in Lorain Ohio? Right?
Some companies left which essentially gutted your lunch business?
You tried promotions and whatever and are at the end of your rope? Right? Just trying to be clear.
I think I can help, but go figure :)
Find a new market, expand to the next town with delivery service.