[Renovation]

I am going through a difficult period and am trying to stay as positive as I can given the circumstances.

I had to close my business last September and have been on unemployment since. Fortunately, I have an upcoming project but, unfortunately, I won't see any income from it until May. I was planning on having income by now. As a result of having to close the business, I was obligated to take responsibility for paying a couple of credit cards that I had to personally guarantee in order to obtain them when the business was active. We had already accumulated a lot of debt as a result of using credit to fund the company and my previous unemployment before I started the company. On top of this, our mortgage is significantly underwater.

So I have two financial problems. One is cash-flow. The other is debt. In order for us to be able to "make it" until I get a paycheck in May we will likely need to stop making our credit card and mortgage payments. The money we have in the bank not including a small retirement savings will not be sufficient to cover our debt and living expenses between now and May. I am going to try to negotiate a deferment but if I am unsuccessful, we have no choice but to stop paying.

We are looking into a home loan remodification but that is an arduous process. We are also looking into a debt management program that would reduce our interest rates but not the credit card balance. It forces you to payoff all your debt in 5 years and the monthly payment may not be substantially lower than our current monthly payment. Given all this, we are going to look into filing bankruptcy and I am meeting with a few bankruptcy attorneys this week and next to get advice.

It is starting to hit us (my wife and I) that we may have to move out of our home because it is just too expensive to continue to live here (unless we score an incredible loan remodification). If we don't, then we might give the home back to the bank either through a deed in lieu of foreclosure or as part of the bankruptcy.

My/our life has been so complicated since I first started the business, especially the last 12 months so we are yearning for a simpler life. We are tired of most of our income (even when I was working) going to the banks and not being able to save for our retirement. We are in our early 50's, so the idea of having all our monies go to the banks for the next 5 years and our not being to save any money, which would be the case under a Chapter 13 would be a terrible existence.

I am trying to stay positive by giving myself credit for taking action and approaching this like a business decision. There is just so much uncertainty in my life right now both in terms of how to make money and how to save it. I am also trying to re-start the business and that has its challenges. I am being tested like never before.

I wonder if it is possible to stay positive through this difficult period. Part of me says that all of this turmoil might turn out to be a blessing in disguise. The potential is there.

[NuckingFutz]

Hey there. Never had a business of my own but have had to simplify. Have you considered selling your home and moving into a much less expensive place? Becoming a 1 car family until the job market picks up? How about a little part tine job on the side?

[Renovation]

GP, Definitely looking to simplify and am starting the process. We have one car and I have been taking public transportation much more frequently. Would love to get a part-time job but even those are difficult to come by. I am starting a project in a couple of weeks, so this is good news. There is light at the end of the tunnel.

Thank you!