100k+ in debt … Feeling stuck … anyone been through this?

Loans
1

Thanks for taking the time to read this. I’m 30 years old, married with 3 kids, and over $100k in debt. I have 3 business loans with weekly payments of $4,500. Yeah, weekly, not monthly.

I started this business without fully understanding what I was getting into. It all began when I was working a full-time A/V job and selling guns on the side. Things were going so well that I got licensed to sell firearms, saved up enough money, got a building, permits—everything to start my business. It was going great for the first year.

Then 2021 hit, and with COVID, everything slowed down. One week, we didn’t have a single customer, and that’s when I took my first business loan to keep things afloat. After that, it felt like one slow period after another, and I ended up taking more loans. Fast forward, I’m almost $75k in debt and down to just one other employee.

At one point, I had a health scare that landed me in the hospital for two weeks. With the shop closed and no income, I had to take another loan, knowing it wasn’t a good idea but hoping things would turn around. I even tried starting another business with that loan, but that didn’t work out either.

Now, I’ve got three loans, two jobs, and I’m just trying to figure out how to get out of this hole. I never touched my personal credit until recently when I had to max out all my cards to cover payroll and other costs. I even sold the shop to cut expenses and focus on gun shows, which went well for a while but then slowed down again.

It’s gotten so bad that I’m asking my wife for money, which is tough for me. She runs a small bakery, and while it helps with some bills, it’s not enough to cover everything. I’m not sure how to make these weekly payments and am scared I’ll lose my house or car. I’m really struggling mentally and physically, not eating lunch anymore, and barely sleeping. I’m just trying to stay strong for my kids.

I don’t know what to do. Any advice or tips would be greatly appreciated.

2

Man, hang in there. I’m in a similar spot, just sinking deeper and deeper trying to make it work. Keep pushing for your kids, and hopefully someone here can offer some solid advice.

3

Rin said:
Man, hang in there. I’m in a similar spot, just sinking deeper and deeper trying to make it work. Keep pushing for your kids, and hopefully someone here can offer some solid advice.

I appreciate it. I feel you, man. I’m out here eating PB&J for dinner almost every day, but my kids have no idea. I’m doing this all for them, and they’ll never see me give up.

4

Is your business set up as a corporation or LLC? You might be able to file business bankruptcy and wipe out the debt. Might be worth talking to a lawyer.

5

Joss said:
Is your business set up as a corporation or LLC? You might be able to file business bankruptcy and wipe out the debt. Might be worth talking to a lawyer.

S-Corp/LLC

6

Wynn said:

Joss said:
Is your business set up as a corporation or LLC? You might be able to file business bankruptcy and wipe out the debt. Might be worth talking to a lawyer.

S-Corp/LLC

In that case, I’d definitely talk to a bankruptcy attorney. It might cost a bit, but it could save you in the long run. You can walk away from the business debt, and it won’t affect your personal credit. It’s worth a conversation.

7

@Joss
Why file bankruptcy if it’s unsecured debt? They can’t take your assets without going to court, and they might be open to working something out.

8

Sam said:
@Joss
Why file bankruptcy if it’s unsecured debt? They can’t take your assets without going to court, and they might be open to working something out.

It’s business bankruptcy, not personal. Different situation, and it won’t hit personal credit like personal bankruptcy would.

9

@Joss
Chapter 13 could be an option here. Clean slate.

10

@Joss
It depends if those loans have personal guarantees. A lot of business loans do.

11

Dakota said:
@Joss
It depends if those loans have personal guarantees. A lot of business loans do.

If they’re personally guaranteed, that’s a different story.

12

Sam said:

Dakota said:
@Joss
It depends if those loans have personal guarantees. A lot of business loans do.

If they’re personally guaranteed, that’s a different story.

Yeah, I’d guess the credit cards are, and maybe the loans too.

13

@Joss
Even if they sell off everything, the lenders still lose. They might be better off working with him to get some cash flow going instead of pushing him into bankruptcy.

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Sam said:
@Joss
Even if they sell off everything, the lenders still lose. They might be better off working with him to get some cash flow going instead of pushing him into bankruptcy.

That might be good for the lenders, but not for him. He could pay a lawyer and walk away from the debt entirely. Why work for free to pay them back?

15

@Joss
I didn’t mean he should pay them back.

16

How did you sell the business? Wasn’t it collateral for the loans?

17

Did you take out the loans under your name or the business? If they were for the business and there’s no personal guarantee, you could consider bankruptcy for the business. But if they’re under your name or personally guaranteed, you might need to look into personal bankruptcy.

I also suggest reaching out to your creditors and seeing if they’re open to working out a plan. I manage loans at a credit fund, and we’re usually willing to work with borrowers instead of pushing them into bankruptcy. It’s always worth having the conversation.

Here’s what I’d suggest:

  1. Try talking to your creditors and seeing if they’ll work with you.
  2. If that doesn’t work, talk to a bankruptcy attorney.
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19

Barrett said:

Forget about the lenders for now. If you’re making $4,500 a week, stop paying them until you’re in a better spot. Get yourself back on your feet first.

20

Finley said:

Barrett said:

Forget about the lenders for now. If you’re making $4,500 a week, stop paying them until you’re in a better spot. Get yourself back on your feet first.

The inventory is down to 30% because everything’s going back to the loans.