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Business Line Of Credit & Bankruptcy

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sirelad

Junior Member
What is the name of your state (only U.S. law)? Texas
I have three lines of credit as follows

BANK 1 = $54k Secured by me personally at 7.3%
BANK 2 = $33k Unsecured at 7.5%
BANK 3 = 35k Unsecured at 11.75%
Credit Card at $14.5k at 10%

Interest payments are about $1000 and I usually make $2000 payments but I am making no headway. I am considering not paying BANK 2 & 3 for a couple of months and then try to negotiate better terms and lower interest rates. I have never missed a payment, but I need to conserve cash due to my suffering business.

Can anyone advise me on how to negotiate terms with banks? I feel as if I will eventually have to file bankruptcy, but I still have approximately $65k left to use on my lines of credit, and that could last me a long time. Maybe long enough to wait out the economy. Therefore, I will only consider it if I get good advice and makes complete sense.

Any advice is appreciated. The dept is killing me and I need a solution.What is the name of your state (only U.S. law)?
 


Antigone*

Senior Member
What is the name of your state (only U.S. law)? Texas
I have three lines of credit as follows

BANK 1 = $54k Secured by me personally at 7.3%
BANK 2 = $33k Unsecured at 7.5%
BANK 3 = 35k Unsecured at 11.75%
Credit Card at $14.5k at 10%

Interest payments are about $1000 and I usually make $2000 payments but I am making no headway. I am considering not paying BANK 2 & 3 for a couple of months and then try to negotiate better terms and lower interest rates. I have never missed a payment, but I need to conserve cash due to my suffering business.

Can anyone advise me on how to negotiate terms with banks? I feel as if I will eventually have to file bankruptcy, but I still have approximately $65k left to use on my lines of credit, and that could last me a long time. Maybe long enough to wait out the economy. Therefore, I will only consider it if I get good advice and makes complete sense.

Any advice is appreciated. The dept is killing me and I need a solution.What is the name of your state (only U.S. law)?

You got two banks to give you revolving lines of credit without being in senior position and nothing to secure the lines? Do any of these lines have a maturity date or covenants?
 

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