topic Re: Not sure what to do. Medical issues got me in over my head. Not sure where to post (BK?) in Rebuilding Your Credit

Not sure what to do. Medical issues got me in over my head. Not sure where to post (BK?)

herald — Wed, 24 Jul 2024 22:08:29 GMT

Hello

I am a small business owner who got disabled / sick and couldn't work for over a year. I ran through all of my money, my credit cards are getting maxed out (I have some left on 2 cards but I am scared to use them).

I am waiting to get some money I am owed but it's taking a long time to arrive. I am trying to rebuild my business but so far no clients (*yet*). I believe I will be working in 2 months at worst, if not sooner.

I was hoping I could live on my credit cards until I get the check I am supposed to get by Sept. and then revisit my finances. However I now get scared every time I use my credit cards because I have no access to money at this moment.

I have no family and no help, no way to pay rent this month if I do not put it on a credit card , which I don't want to do. I had to put it on a credit card last month and in the event I do have to file for BK I just don't want to get into any trouble. I called a BK lawyer a couple of months ago who told me to stop using my credit cards, which I couldn't at that point and believed I would receive the check I am owed ($22k) before now. It is for a car repurchase on a lemon car, the paperwork is signed, they just are taking 75 days to pay (40 days from now = 75 days). I don't want to do BK if I can avoid it. I can list what I owe I am just not sure where to post on this forum for this topic.

As of right now I am not late on any payments, have been making minimum payments for a few months / paid a little extra last month.

I am really scared and panicking most of the time which isnt' helping. I don't qualify for disability because I own my company and I did not work. I am still technically disabled but can absolutely work at my job if I can get clients again, which I have been able to do in the past when I got sick once before.

I don't know where to turn, other than extreme predatory loans which make me feel terrified. I am not used to not paying bills, have never filed BK and am not used to the situation I am in, do not know how to navigate.

Thank you so much, I truly appreciate it.

Re: Not sure what to do. Medical issues got me in over my head. Not sure where to post (BK?)

JoeRockhead — Thu, 25 Jul 2024 00:07:21 GMT

Welcome to the forum. I've asked for this thread to be moved...

Would be helpful if you could list out your accounts, balances, limts, etc....

Re: Not sure what to do. Medical issues got me in over my head. Not sure where to post (BK?)

SouthJamaica — Thu, 25 Jul 2024 03:05:30 GMT

@herald wrote:
Hello

I am a small business owner who got disabled / sick and couldn't work for over a year. I ran through all of my money, my credit cards are getting maxed out (I have some left on 2 cards but I am scared to use them).

I am waiting to get some money I am owed but it's taking a long time to arrive. I am trying to rebuild my business but so far no clients (*yet*). I believe I will be working in 2 months at worst, if not sooner.

I was hoping I could live on my credit cards until I get the check I am supposed to get by Sept. and then revisit my finances. However I now get scared every time I use my credit cards because I have no access to money at this moment.

I have no family and no help, no way to pay rent this month if I do not put it on a credit card , which I don't want to do. I had to put it on a credit card last month and in the event I do have to file for BK I just don't want to get into any trouble. I called a BK lawyer a couple of months ago who told me to stop using my credit cards, which I couldn't at that point and believed I would receive the check I am owed ($22k) before now. It is for a car repurchase on a lemon car, the paperwork is signed, they just are taking 75 days to pay (40 days from now = 75 days). I don't want to do BK if I can avoid it. I can list what I owe I am just not sure where to post on this forum for this topic.

As of right now I am not late on any payments, have been making minimum payments for a few months / paid a little extra last month.

I am really scared and panicking most of the time which isnt' helping. I don't qualify for disability because I own my company and I did not work. I am still technically disabled but can absolutely work at my job if I can get clients again, which I have been able to do in the past when I got sick once before.

I don't know where to turn, other than extreme predatory loans which make me feel terrified. I am not used to not paying bills, have never filed BK and am not used to the situation I am in, do not know how to navigate.

Thank you so much, I truly appreciate it.

Since you're expecting the check in 40 days and since you can work if you can scout up some business, my advice is:

-continue doing what you're doing, with minimum payments

-try to scout up some business

-do some moonlighting to supplement income

IMHO a predatory loan won't help you.

I would join a good credit union.

Re: Not sure what to do. Medical issues got me in over my head. Not sure where to post (BK?)

herald — Sun, 28 Jul 2024 23:05:25 GMT

Thank you so much. Unfortunately I have hit the end of the money I do have and cannot keep up all of my minimum payments this month. I am now terrified to use my credit cards, even though it's just one month late payment.

I am not getting any offers for work and now have to consider dissolving my company, which I would figure out, except I spoke to a bankruptcy attorney a couple months ago who told me that If I do chapter 7 and dissolve my s corp, I can't open another business doing the same thing. I do a very specific thing that I don't know how else I would work, and I am not sure how to navigate the rest of this. Admittedly I am shaking and scared. No family or friends to help. I really do appreciate your advice, thank you.

Personal:

US Bank CC: $19400
Synchrony CC: $5700

Barclaycard: $7400

Car (it is a lemon and if I can keep the payments up for 4 more months I will get back $20k on this car, the insurance is $1000 a month and car is $850 a month, was planning to use the check that is coming to pay for this worst case scenario).

Business (Corporation):

EIDL SBA loan : $45k balance
Chase CC: $9700 balance (card is closed)
Us bank CC: $14500 balance

I have payments due for Chase and US Bank business CC this month that I can't make, I just made minimum payments for the barclaycard and synchrony bank cards, and reached out to a bankruptcy lawyer. I don't have access to cash so I don't know how else to survive besides using the 2 credit cards I have made minimum payments on.

Even if I don't do the bankruptcy and somehow manage to start earning again (my industry had an 80% decline in business the past year and apparently it isn't getting better fast enough), I don't know the ramifications of using these 2 credit cards that I have $5000 each or so that I haven't used. I of course would like to pay off anything I am spending on these cards once I get the check payment, I just don't know all of the ins and outs of the process, and the bk attornies I spoke to a few months ago scared the **bleep** out of me.

Thanks so much

Re: Not sure what to do. Medical issues got me in over my head. Not sure where to post (BK?)

herald — Sun, 28 Jul 2024 23:46:51 GMT

Thank you.

If this thread gets moved, will I automatically be replying in the correct area of the forum (once moved)?

personal credit cards:
US Bank: Limit $19500 balance $19350

Synchrony Care credit: Limit $8500 balance: $5900

Barclaycard: Limit $11,000 current balance $5700

Car lease: $850 / month + $1000 insurance (bad year due to 2 consecutive cars being lemons = accidents, insurance now through the roof)* This car is a lemon and can get repurchased from Audi in about 4-6 months. I was hoping to find a way to keep up the payments until the repurchase which will give me about $16- $22,000

Corporate / Business (S Corp):

Chase INK CC : $9700 balance (card is closed, i was recharged a $2200 charge that I successfully was refunded for via chase chargeback, not sure if I will be able to clear the rebill as it's months old now)

US Bank CC: $14,500 limit , $14346 balance

EIDL SBA Loan: $55,000 loan, current balance $45,000 (on a $29 a month lowered hardship payment until Dec)

I have been current on all payments until this coming month. It looks like for the Corporate US Bank cc, Chase INK payment I either can pay $100 towards each (not the minimum owed, but at least some kind of payment) and would have to use my other personal credit cards to pay car insurance and car payment + registration this month, which I was hoping to be able to pay off once I get that check in 40 days). My concern is if I do bankruptcy these credit card charges looking like an issue, the bankruptcy lawyers I spoke to just really scared me about all of this.

The other question I have is about doing business as a sole proprietor at my profession, after the BK attorney told me if I dissolve my company I "cannot continue doing business under that name or anything similar to that name, or doing the same kind of business". That is one of the biggest things scaring me right now, and my need to survive with the 2 personal credit cards that I am current and up to date on minimum payments on until I get my check (and I hope, another job).

Thank you again so very much. This is a huge relief to have this forum for support and insight and advice. I am looking into Chapter 7.

Re: Not sure what to do. Medical issues got me in over my head. Not sure where to post (BK?)

herald — Sun, 28 Jul 2024 23:56:45 GMT

Thank you very much. I am planning to join a credit union once I have enough money to be able to open an account. Any reputable credit unions or places on this forum I can find reputable credit unions that work with people who have had BK or credit issues? This is my first time doing this or being in this position. I have been given frustrating news today that my profession which had a massive strike last year, has not bounced back since and is still only at 20% of the work coming back, a year later. Was told many people in my profession (other roles / titles) are in a similar situation looking at BK. For context, I am now thinking it could take 4 months to start getting clients again just in case that makes any suggestions different.

I have been looking into any and all other jobs that I can earn money based on my skillset. My profession is a high level, very specific position in my specific industry . Turns out this job title and 25 professional years of a very specific and sought after skillset doesn't appear to translate to any other jobs, nor is there any specific recruiting companies for my profession, nor are there listings for my profession (it is unique, I have been very successful at it prior to illness taking the focus over my life). I am hoping a recruiter could help me find other opportunities for working that my skillset translates to, but don't know where to start due to the niche profession I am in (I am looking / trying to find these people / recruiters / oppportunities). My profession pays a lot of money when I get the work...... If I plan to pay my 2 credit cards that aren't maxed out for what I am currently charging on them once I get my check, will that be a problem if I were to have to eventually file for BK?

Again, thank you so very much.

@SouthJamaica wrote:
@herald wrote:
Hello

I am a small business owner who got disabled / sick and couldn't work for over a year. I ran through all of my money, my credit cards are getting maxed out (I have some left on 2 cards but I am scared to use them).

I am waiting to get some money I am owed but it's taking a long time to arrive. I am trying to rebuild my business but so far no clients (*yet*). I believe I will be working in 2 months at worst, if not sooner.

I was hoping I could live on my credit cards until I get the check I am supposed to get by Sept. and then revisit my finances. However I now get scared every time I use my credit cards because I have no access to money at this moment.

I have no family and no help, no way to pay rent this month if I do not put it on a credit card , which I don't want to do. I had to put it on a credit card last month and in the event I do have to file for BK I just don't want to get into any trouble. I called a BK lawyer a couple of months ago who told me to stop using my credit cards, which I couldn't at that point and believed I would receive the check I am owed ($22k) before now. It is for a car repurchase on a lemon car, the paperwork is signed, they just are taking 75 days to pay (40 days from now = 75 days). I don't want to do BK if I can avoid it. I can list what I owe I am just not sure where to post on this forum for this topic.

As of right now I am not late on any payments, have been making minimum payments for a few months / paid a little extra last month.

I am really scared and panicking most of the time which isnt' helping. I don't qualify for disability because I own my company and I did not work. I am still technically disabled but can absolutely work at my job if I can get clients again, which I have been able to do in the past when I got sick once before.

I don't know where to turn, other than extreme predatory loans which make me feel terrified. I am not used to not paying bills, have never filed BK and am not used to the situation I am in, do not know how to navigate.

Thank you so much, I truly appreciate it.
Since you're expecting the check in 40 days and since you can work if you can scout up some business, my advice is:
-continue doing what you're doing, with minimum payments
-try to scout up some business
-do some moonlighting to supplement income

IMHO a predatory loan won't help you.

I would join a good credit union.

Re: Not sure what to do. Medical issues got me in over my head. Not sure where to post (BK?)

FicoMike0 — Mon, 29 Jul 2024 22:48:42 GMT

So you're paying $1850 in lease and ins on a lemon? Are you driving it? Where to that's worth $60 a day? Lemon or not, you can't afford it. You're expecting a $22000 refund on it? Id think getting out of the lease would be the best case deal. Sounds fishy to me.