Things have been very slow for the past year. I've come to the point where the revenue stream is not covering the overhead costs. It's been that way for a few months now and has eaten up all of the company savings. I've been in business for 14 years and are not sure what steps are needed to file for BK. Any help from guys that have gone through this situation would be helpful.
When to call it quits?
- Thread starter AVD001
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ceb58
Senior Member
- Location
- Raeford, NC
Sorry to hear that. My advice is if you see no other way would be to contact an attorney. The laws from state to state and the Fed. laws change so much its hard to keep up with.
renosteinke
Senior Member
- Location
- NE Arkansas
BTDT .... and my words are harsh!
First, stop kidding yourself. When you're broke, you're broke.
Second, pay off the supply houses at all costs. When you fold, and the bills are paid, your credit report will shine. Stiff the suppliers and you'll be lucky to get hired by a temp agency.
Third .... here's the really hard part ... get ready to move. There ARE places that are hiring - places like Edmunton (Canada) and North Dakota. Keep that income flowing.
Fourth, protect your credentials. AND your records. It's a lot harder to get a journeyman card (let alone a contractors' license) in another jurisdiction than it is to get a new drivers' license. Some places even want your W-2's and time sheets for the past several years!
First, stop kidding yourself. When you're broke, you're broke.
Second, pay off the supply houses at all costs. When you fold, and the bills are paid, your credit report will shine. Stiff the suppliers and you'll be lucky to get hired by a temp agency.
Third .... here's the really hard part ... get ready to move. There ARE places that are hiring - places like Edmunton (Canada) and North Dakota. Keep that income flowing.
Fourth, protect your credentials. AND your records. It's a lot harder to get a journeyman card (let alone a contractors' license) in another jurisdiction than it is to get a new drivers' license. Some places even want your W-2's and time sheets for the past several years!
I go up and down with whether it is time or not to quit myself. It is hard to get a job when you have been the owner of a company. People have seemed to think I will bail, if the economy turns - right, or want too much money later.
Renosteinke is right with his advice.
My wife and I talked and came to the conclusion that if and when I stop that I should maintain my license and insurance for at least a while because if a sizeable job came along and I had no license I couldn't even go for it for lack of credentials or license.
Renosteinke is right with his advice.
My wife and I talked and came to the conclusion that if and when I stop that I should maintain my license and insurance for at least a while because if a sizeable job came along and I had no license I couldn't even go for it for lack of credentials or license.
mtfallsmikey
Senior Member
I got out of my mech. contracting biz in '98, things were going well at the time, but was just burned out, did not have the capital to expand, did not want to go into any more debt. plus, scoring a job with a big defense contractor didn't hurt eiether at the time. I've kept all of my trade certs, and my bus. license just in case....
goldstar
Senior Member
- Location
- New Jersey
- Occupation
- Electrical Contractor
This would be tough advice for anyone to give as well as accept. Hopefully you've set your company up as an entity other than a sole proprietorship (i.e. Inc, Sub-Chapter S or LLC). Unless you've signed for a loan personally, your creditors can only make claims to the extent of what your company is worth and make settlements for cents on a dollar if need be. If you've signed for a loan personally or are a sole proprietorship they can sue you personally. As has been mentioned, laws vary from state to state so your accountant and lawyer will have to get involved in your insolvency and will give you the best advice. Good luck. I wish you the best.
BTW, you not alone out there. There are many who are undergoing similar problems. I'm seeing jobs being taken for fewer and fewer $$. Hopefully those $$ are going to other licensed electricians but I'm not confident that they are. Gas, repairs, insurance prices and taxes keep going up so the only thing that can go down is my salary or draw. I started out in January of last year at 75% behind the prior year and ended up 25% behind. This year I've started out at 75% behind last year. Hope it gets better.
BTW, you not alone out there. There are many who are undergoing similar problems. I'm seeing jobs being taken for fewer and fewer $$. Hopefully those $$ are going to other licensed electricians but I'm not confident that they are. Gas, repairs, insurance prices and taxes keep going up so the only thing that can go down is my salary or draw. I started out in January of last year at 75% behind the prior year and ended up 25% behind. This year I've started out at 75% behind last year. Hope it gets better.
SmithBuilt
Senior Member
- Location
- Foothills of NC
Bankruptcy is not always the answer. Lawyers my not be the best to consult on whether or not to file. After all they make considerable money on BK's. You may be better served by an accountant.
It depends on the amount of debt and assets you have.
I agree having a good credit report after all this would be nice. But if your contemplating BK your probably beyond having a good report. Ask your creditors to work with you and continue paying them off.
Good luck.
It depends on the amount of debt and assets you have.
I agree having a good credit report after all this would be nice. But if your contemplating BK your probably beyond having a good report. Ask your creditors to work with you and continue paying them off.
Good luck.
renosteinke
Senior Member
- Location
- NE Arkansas
There's a difference between what 'the books' say and the real world.
Parts houses want their money. They know all about corporations. That's why every supplier has asked me to personally guarantee the account, no matter the form of company organization.
Reading "between the lines" of my earier post, I was telling the OP to fold up his tent ASAP - and not only after all his resources were completely exhausted.
-Get that job BEFORE the creditors get restless;
-Close your doors while you still can pay the creditors;
-Set aside the money you'll need to maintain your credentials.
Parts houses want their money. They know all about corporations. That's why every supplier has asked me to personally guarantee the account, no matter the form of company organization.
Reading "between the lines" of my earier post, I was telling the OP to fold up his tent ASAP - and not only after all his resources were completely exhausted.
-Get that job BEFORE the creditors get restless;
-Close your doors while you still can pay the creditors;
-Set aside the money you'll need to maintain your credentials.
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