Drowning in debt

[helpmeGod]

My husband and I have had a really rough year. My husband is self employed and has been having issues with his 50/50 partner. The business itself is only in its second year of operation. There are a lot of bills there so we essentially have no money coming in. We've exhausted all of our savings and are in serious trouble now. We've been able to stay current on the mortgage until now. We haven't been able to pay credit cards in months. We have both been looking for jobs but nothing has been coming our way. I have been a stay at home mom for the last 7 years, so it's been tough getting back into the work force. I guess what I really want to know is how should we address the creditors? Do they really work with you? We don't have any money right now to even make paltry payments! Please help me!

[hawkster]

First off, BOTh you and your husband need to bring income into the house. I don't care if your greeting people at Wal-Mart...do something to bring money in.

You might need to post some details about your husbands business; might be time for a reality check

Finally, first thing in the morning when you read this make a list of all your debtors amd I'd make contact with all of them. Explain your situation. 9 times out of 10 they are willing to work with you. If you go hiding from them that's when they start stalking you down and not willing to work with you.

[adaway]

You might consider contacting and visiting a temp/staffing agency to help with finding a job. You can use the phone book or the Internet to find ones in your area.

Often times they have clerical or laboratory, or other jobs lined up and they match you with an employer. Usually no benefits and often times it is only for a specific time period/temporary (6months, 9months, or longer...depends.) Sometimes, the employer might consider hiring the temp after some time.

Another option, although I am not sure of this, would be to see if there is an unemployment office in your area. They usually have advisors and offer skills training and also have job postings. I know you need a job ASAP but they might have more listings and other resources. I am not sure if they will permit you to use their resources if you are not someone who is in unemployment filing but it's worth a try to call and find out.

In both cases, you need to have your resume ready or work on that.

[Scanner]

Partnerships should never be 50/50. It always causes problems. The minimum split should be 51/49 to prevent stalemates. Better even that is 40/30/30.

That aside, don't keep trying to prop up a failing business. Nothing wrong with failing once, twice, or thrice in business.

Call it quits, get back on your feet, re-group, and try again.

[disneysteve]

We have both been looking for jobs but nothing has been coming our way.

First off, BOTh you and your husband need to bring income into the house. I don't care if your greeting people at Wal-Mart...do something to bring money in.

I agree. Any work is better than no work. Some income is better than none. Take whatever job you can and keep looking for something better.

don't keep trying to prop up a failing business.

I agree here, too. Don't throw good money after bad. Cut the losses. Get out and start rebuilding. The first thing to do when you find yourself in a hole is to stop digging.

[rennigade]

[QUOTE=Scanner;146426]Partnerships should never be 50/50. It always causes problems. The minimum split should be 51/49 to prevent stalemates. Better even that is 40/30/30.

I don't know if I agree with 40/30/30. When you introdue 3 people into a business, it will always be 2 against 1 unless everyone agrees. I personally wouldn't do anymore than 2 partners.

[Scanner]

don't know if I agree with 40/30/30. When you introdue 3 people into a business, it will always be 2 against 1 unless everyone agrees. I personally wouldn't do anymore than 2 partners.

Yes but 2 against 1 is good.

I think of a successful partnership I know of w/ my best friend.

It's an ISP - my friend is 20% partner. He's in charge of the technical aspect of the business.

Then, there's the marketing guy - he's 40% partner. He markets and sells the business.

THen, there's the "moneybags/executive" who's been in small business for years, fairly rich, and had 10-30 employees. He handles day to day operations and is the executive (hires/fires, handles loans, payroll, legal aspects).

When there is an impasse on business, the partners call a vote.

Sometimes it's 40/40 against the 20.

Sometimes its 40/20 against 40.

The thing is there is never a stalemate and business gets done. Each person has their respective domain and administers the business therein. Sometimes the marketing and techie vote against the executive or any combination thereof.

My friend has been happy being 20% partner.

My take is most people have immature views on what a partnership is all about. A partnership doesn't always mean 50/50 and it probably shouldn't most of the time.

[Seeker]

Yes but 2 against 1 is good.

I think of a successful partnership I know of w/ my best friend.

It's an ISP - my friend is 20% partner. He's in charge of the technical aspect of the business.

Then, there's the marketing guy - he's 40% partner. He markets and sells the business.

THen, there's the "moneybags/executive" who's been in small business for years, fairly rich, and had 10-30 employees. He handles day to day operations and is the executive (hires/fires, handles loans, payroll, legal aspects).

When there is an impasse on business, the partners call a vote.

Sometimes it's 40/40 against the 20.

Sometimes its 40/20 against 40.

The thing is there is never a stalemate and business gets done. Each person has their respective domain and administers the business therein. Sometimes the marketing and techie vote against the executive or any combination thereof.

My friend has been happy being 20% partner.

My take is most people have immature views on what a partnership is all about. A partnership doesn't always mean 50/50 and it probably shouldn't most of the time.

Ok.... what happens with the 49/51 parnership when it's the one with the larger ratio that is causing the failure (for whatever reason)? Or even the person with the smaller ratio inadvertently causes the failure? We'd still have the other partner trying to pickup the pieces.

And with the 40/40/20 partnership, even one of the 40's having a financial catastrophe might cause the whole business to fail and your friend the 20% interest person would lose too.

The OP only said there was a problem with the other partner and that there's no money. Partnerships fail when they are in complete agreement over how things should be handled as well. The ratio only matters in voting decisions; but businesses can and do fail even when handled properly.

What matters is that there's people without any income and they need to get jobs that pay anything so that they can talk with their creditors. They need to cut their losses and move on.

[Saving in So Cal]

I think the temp agency idea is an excellent one for both you and your husband. I have worked through temp agencies several times in my life when I did not have a permanent job. They were always able to keep me busy so I had money coming in. Some agencies even offer computer and other skill-building classes so you will be more marketable to employers.

I am not sure if you meant it in this way, but you said no jobs have come your way. My jobs have never found me. I have always found them and I have always done it without connections (because I don't have any). I look in the paper. I look on the internet. I fill out applications. I send out resumes. I don't waste anyone's time by applying for job I know I am not qualified to do and I also don't disregard jobs because I think they are beneath me.

I am not trying to sound holier than thou. It's hard looking for a job and the rejection feels awful. However, I know that I don't have anyone to bail me out if my finances tank. So, if I need a job, I pound the pavement until I find one. It's that simple for me.