What should I do.............HELP. Credit Problems?

I'm 27 and started a business when I was 20. I was making over $300,000 per year when I became sick. I lost my business and owe just over $100,000 to creditors for loans that were made to the business which I personally guaranteed. Because of my illness I haven't worked in over 4 years and haven't paid any of my creditors either. I've lost my house and my car (live with a family member), my credit is terrible and all I have left is $25,000 in cash. Should I try and work out a payment plan to my creditors and get a job? Or should I file bankruptcy and just start fresh (I hate the idea of being ruined for the next 10 years) I'm also considering starting another business with the money I have but am not sure how to handle my debt problem first. The first business I started with only $1,000 so I have enough money to start a business and don't need any more capital or credit to do it. Please serious advice only. Thank you.

You may want to start by offering a cash settlement to your creditors. If you have cash in hand they may be willing to settle for much less than the actual amount owed. I have heard of some who have settled for ten cents on the dollar. It would be a relief off of your mind if you could first solve your credit problems.

You need to seek the advice of legal counsel.

I could tell you many different interesting ways you can go, but this is a perfect question for a lawyer.

Sure, it will cost a little bit, but you'll have some concrete ideas, and be able to take action immediately.

sorry to heat=r you got sick. Maybe ask an accountant or business adviser. I am wondering what business you can start for $1,000, I could do that maybe? Good luck with whatever you decide to do, I hope you get some good advice.

Since your credit rating is bad, you may have trouble getting credit again when you start your business. Filling bankruptcy is an option since you don't have a car or house, but they may take your $25,000 and split it amongst your creditors. Try talking to a debt consolidator and see if your creditors will take a lesser amount, like 10 or 20 cents on the dollar and then you will be out of debt and ready to start again.

I think using a professional debt arbitrator is the answer then possibly entering credit repair. What business were you running that you earned so much with so little startup capital?

I would venture to say that if the court system "knew" that all you have is the $25000 left, it would require you to take "this money" and divide it up equally amongst your debtors to end all this for you.
Bankruptcy laws have changed and I would compare the 2 options. "IF" the debtors would agree to take a equal division of the monies you have left and be silent without further action that might be better than filing bankruptcy. Sounds like you NEED good solid legal advice on this issue. With good legal representation you just might get this accomplished.
I hope this helps.