Own a Small Business
March 7th, 2012 by Questions
I own a small business and ran into some complications a few years ago from a fire. we are holding our own in the business but the credit that we racked up is mind boggling. The interest is killing us. We have unsecured loans of about 100,000. We are capable of paying them off over time if we can get the interest down or gone. Will this mean I will have to close my business or can I keep it going? If it closes than noone gets paid. I know I owe the money and believe it should be paid back. Any suggestions?
Posted from: Nova Scotia
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March 07, 2012 at 6:49 am, A licensed trustee said:
It sounds like you should be looking into a consumer proposal to deal with your debts. With a proposal you offer to repay a portion of your debts. The amoutn you will be required to repay is the greater of:
1) the amoutn your creditors will receive if you filed for bankruptcy; and
2) an amoutn large enough to entice your creditors to agree to your offer – currently that means at least 1/3 of what you owe.
When you file a proposal you are able to continue to operate the business.
The next step is to contact a local trustee to see if filing a consumer proposal wil work for you.