Best advice for my situation please

By | December 30, 2015
I have recently resigned from a position and now I am in a financial bind so to speak. When I took the job, my employer paid for three years of training up front (approximately $8,000) and now they want me to repay them. I was not given a specific timeline or amount to start paying back right away. The employer took my last two checks at applying about 1,000 off the top. Now, what would be the best course of action to pay this off? I do not wish to use my credit card or savings because it would leave me in even more debt. I have other financial responsibilities to think about. I am also in the process of trying to secure another position at this time.

In the past, my family and I have helped my husband. How do I get him to understand that he really needs to start stepping up and helping me through this very stressful portion of my life? I am not down emotionally with the things that have gone on. As a matter of fact, I am taking proactive steps to secure myself as a potential employee with a great talent in my field. I am also trying to secure my financial future the best way I know how.

Regarding my family – we are a self employed couple (22 years) in Maryland with nearly 200K in combined personal and business debt which we incurred when we moved our business to a renovated space on our property. The economy over the last 24 months has severely impacted our income and made servicing the total debt impossible. Despite many cost cutting measures we may be forced to file Chapter 7 for personal and possibly business debt. We have met with one attorney so far and gotten a second opinion from a CPA who reviewed recent tax returns. We plan to meet a second attorney before making any final decisions. We have been advised by the first attorney that “by law” he can not advise us to assume any new debt prior to filing. We are in need of a vehicle and he knows that but has emphasized multiple times he can not advise us to take on new debt. Frankly his tone and his contract language beg us to read between the lines.

I have had a friend (also self employed) nearly file and they advise us to get a car loan before we file. Our credit is good, we are current on all loans and credit cards, but feel certain we are at risk of defaulting soon. If our personal debt alone is discharged our cash flow will allow us to continue our mortgage and other necessities as well as make a modest car payment.

My question is this, since we have applied for a mortgage modification as well, and our case is now in the hands of an agent, will applying for new credit before they determine our case be a big mistake? Does anyone else have thoughts on options? We do not own any assets of value that we could sell or we would have done it already.

We may or may not opt to file business bankruptcy as well. One of the businesses is owned 51/49 (woman owned) the other business is owned jointly. Both are S corps. The house and most of the credit cards are joint debt.

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