Factoring/New Authority

I'd get a loan against a truck or two before my house, especially if you own the house free and clear all ready. Just me I guess, I was wrong once today, it could happen again.

 

If you go broke, you will more than likely loose your house anyway, even if you don’t have it up for collateral.

If you are running so tight that waiting on your money a couple of weeks will break you, you’re not in very well financial shape. The day I have to factor a load will be the day I quit.

 

Does your house go on the chopping block in bankruptcy proceedings? I figure you're supposed to stop digging the hole before it gets deep enough to swallow your house but what do I know.

 

If you continue to go deeper and deeper that's one thing but I thought this thread was about collecting on your invoices whether it be factoring or quick pay or come up with your own short term cash.

 

If you have equity in your house, in most states, you will likely loose your house in bankruptcy. I know in TX, they can’t take your house, but most states they can. You’ll likely loose any assets you have equity in, during a bankruptcy.

If somebody filed bankruptcy on you, how would you like them living fat in a big paid for house, and not having to pay their debts?

 

In my opinion, if someone can qualify for an unsecured line of credit through their bank or credit union. it's a much better option than factoring.

To factor or not to factor is a subject that has been discussed on this forum ad nauseam LOL.

I personally don't and won't factor, it's like paying loan sharks.

However, if someone has to consistently use factoring agents as a means of floating their cash flow and keeping their heads above water, that to me is the bigger concern in this discussion.

 

I factor as a means of risk management.

Im new in the game, and having someone else accept the risk (broker not paying) is an acceptable cost of business for me

 

That's if you pay for non-recourse factoring.usually cost a couple percent higher than other factoring.

 

Depends what chapter bankruptcy you file.
One chapter you file and reaffirm your debt with assets. Get unsecured debt, reduced or eliminated.
Different chapter you file everyyis sold to satisfy all debt. You walk away debt free , start over at go.

Depends what state your residence is in also.

 

Yes, chapter 13 let’s you keep your secured debt, as long as you can still make payments. Chapter 7 is compete liquidation. More often that not, a 13 will eventually be converted to a 7, as most still can’t pay their bills under a 13.