LOSING EVERYTHING
This was the last thing we wanted to do, was to file in Los Angeles Chapter 7. We had to have a way around it. We could lose everything! We were getting advice from well meaning people on all sides, but in the end we had to sit at the kitchen table and literally do the math on the back of an envelope. We had to work something out with the banks and with our suppliers, but we weren’t sure how to go about it. We thought that we could possibly work something out with the suppliers, but with the banks we weren’t too sure. They were not to anxious to have us settle up for anything lower than what we owed on the loans. They were getting ready to call the notes. Both banks had contacted us. We were under extreme pressure to get some type of plan in order. We knew that a filling would ruin our credit for years, and would prevent us from being able to continue in business. Also, we would lose most assets, including, now, maybe our house. We are too old to just start over. This is something we could never recover from. We needed to buy some time.