With the housing and building industry being sharply reduced, contractors are facing daunting challenges. The Generals are either slow paying or not paying at all. The fight over retainage is fierce with the Generals winning and the contractors losing, and then the sub contractors are forced to make difficult decisions and frequently make mistakes as follows:
1. They fail to pay their 941 payroll taxes,
2. They build up huge debt on their credit cards,
3. They frequently owe large amounts to the union benefit packages,
4. Vendor debt is massive,
5. Lines of credit are maxed out and in default,
This puts enormous pressure on the contractors, which cannot be resolved as there is no cash coming in, thus paying out is impossible.
However there is another option, a massive workout which when effectively and carefully planned and implemented, will result in a clean slate opportunity to dig out of the debt.
No, not bankruptcy, no legal procedures and in the end the credit scores can be rehabilitated restoring the personal credit scores to the previous highs they had earned.
Sounds like a dream come true, it may be, but only if you take the first step and find a way to implement such a plan.
As with so many specialties, such a plan cannot effectively be accomplished without expert help. Such a plan requires specific skill and experience.
Do it, find a professional workout specialist, who can lead you through this transition.
Call me, I can help you. 413-549-2966.
