Selling our home to pay down debt- just double checking the math!!

[ForgedbyFire]

a

[Zamboni]

From what you write, you have to sell the house. Unless you can sell the business for a profit at this time, it's your only viable alternative to the financial situation you have created.

[Another Reader]

Can you keep the house if you file BK?   You might be able to get out of the lease if it is personally guaranteed.  The situation is complex enough that in your shoes I would contact a bankruptcy attorney.  Not one that insists you file, one that is good at playing chicken with the creditors.  The attorney should be able to negotiate the unsecured debt down to next to nothing.  Ten cents on the dollar might do it if he threatens to file.  Maybe even less.

Are you sure your husband qualifies for military service?  Can he get some kind of useful training while in the service?  This is not a plan until you are assured he qualifies. I might hold off to see if you can settle everything first.

[Another Reader]

The cold, hard truth is you can likely get this done for ten cents on the dollar and move forward.  Keeping the house might be possible.  In your situation, I would at least consult with a knowledgeable attorney that can explain all your options.

[waltworks]

The house, when all is said and done, won't pay off the CC debt, and then you'll have no place to live.

Sounds like you have kids - I'd put their welfare first and file BK/keep the house (assuming you live in a state where this will work). Then sell everything at the gym/quit doing that. It's not a job, or a business, if you don't make money. You can go work out at someone else's CF gym.

-W

[Hargrove]

Then sell everything at the gym/quit doing that. It's not a job, or a business, if you don't make money.

+1

We really don't know your specific circumstances. We can assume you realize now that your plan to finance anything but a toothbrush on a credit card, nevermind an entire business, amounted to the financial equivalent of gently placing a piranha in your underpants.

See this as a wake-up call to become financially literate, because there is probably a lot more for you to learn than just this problem's solution. It is very worth reading all the stickies with general advice in every forum on this board, as well as the debt emergency blog post here: http://www.mrmoneymustache.com/2012/04/18/news-flash-your-debt-is-an-emergency/

You can get past this problem relatively simply - the task will be more educating yourself on finance to prevent anything like this from happening to you again. Good luck!

[Scortius]

Yes, one of the things you need to think about with the gym is the opportunity cost.  You may be able to keep it somewhat revenue neutral, but you're doing so at the cost of not earning a modest income at some other job.  It may be tempting to look at it and think "it's not costing us anything", but it is, it's costing you at least one full time salary and benefits.

[waltworks]

You can probably quit the lease, actually. You have no assets they can really come after, so there's IMO nothing to lose by liquidating the equipment and closing now. They can find another tenant. Such is the life of a landlord. June 2018 is a long time to be spinning your wheels, partner or not, and things could certainly also go horribly wrong (someone gets hurt and sues you, etc).

Seriously, you need to be much more ruthless about this. The business didn't work. Kill it.

-W

I am sorry I did not clarify this earlier.

The gym is set to be partnered out - due to the lease we can not just quit. Or we would be financially on the hook for the price of the monthly lease.  This divys up the risk... plus allows my husband to work full time at a paying job.  Beyond that we plan on closing at the end of our lease - June 2018

[Dicey]

Looks like FbF has pulled his post and left the building. Perhaps the lower case "a" he left behind is his way of giving everyone a high grade for their astute advice. Or maybe he just didn't like any of it.

[Another Reader]

Looks like FbF has pulled his post and left the building. Perhaps the lower case "a" he left behind is his way of giving everyone a high grade for their astute advice. Or maybe he just didn't like any of it.

She had already made up her mind what she was going to do.  Other people disagreed with her plan, which she did not expect.  She rejected everyone's advice and moved on.