Husband is afraid of losing it ......

[4myson]

My friend Cindy's husband is losing his business. Although, he is the last to know. She told me that she doesn't know what he owes his suppliers but it's got to be big. He has borrowed over $200,000 from friends, relatives and mortgages to keep the business afloat for the past 11 years.

However, he is out. He hasn't paid her/himself/family in over 3 weeks. He can't pay or help pay any bills (business or otherwise). She's having a hard time paying for stuff. She's afraid that she can't pay her bills and called me for comfort.

I told her to get a read on the debt and have him try to find another job.

I guess he is pridefull, because he thinks no one will hire him - and therefore is giving up.

What advice can you offer me to give to my friend? What can Cindy do to "get her husband" off his duff?

Has anyone been through these tough times?

 

[mudnuri]

how is he the last to know?

or did you mean she?

Well, they're married so half of that debt could easily turn into hers. If he's mortgaged their house to keep the business afloat, she could lose her house.

she has NO choice but to get the books in her hands and find out exactly what is going on.

as an FYI for those of you interested in owning a business, or who do....a wise word from my X father in law, who has never in his life worked for someone else (except his dad till he was 20) NEVER EVER EVER mortgage your house to float your business...........Your friend may soon find out why.

Businesses fold every day, thankfully my X never had that happen, however some of his friends did and it wasnt good...depression is very high on the list of effects of business issue's

Brandy

 

[barkley]

tell her to seek legal counsel NOW. a dear friend was in a similar situation wherein she was not aware of the magnitude of debt the bsns. her husband ran had racked up (again alot was personal loans from family and friends). they ultimatly divorced (the bsns. problems compounded existing problems) and she was legaly liable for the debt. over 15 years have passed and she is still mired in debt, has on-going problems with the irs, and her credit history is shot.

depending on how the bsns. was set up it can cause terrible personal finance problems.

she cannot force him to get a job, she can however lay out for him clearly the financial (i don't want to think about the emotional re. family/friend loans) implications of failing to do so.