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  1. #1

    $200-300K - General Contractor Poor Credit Trying to Payoff CC and Taxes Due

    Good evening:

    I am coaching a client to get his financials back in shape and reposition his high end home general contracting business.

    He had a partner who was embezzling money and screwed him on credit cards, vendor payments, etc. He's removed him from the partnership and wants capital to rebuild the business. He normally does about $2MM in gross revenue = $300K net operating capital.

    $120K in credit cards
    $45K to Taxes - Federal and State - on a payment plan with State (California). Federal - working on getting one.
    $55-75K wanted for operating capital for marketing and ops.

    He's a renter, not a homeowner. FICO is under 550. Doesn't want to file bankruptcy. Wants to pay things off.

    My go-to funding sources can't look at this because of FICO and taxes outstanding.

    I'm talking to some private high net worth individuals who are adventurous but I wanted to see if y'all had some referrals for me.

    Thanks!

    Sincerely,

    Marcelo Bermudez, CEPA
    Chief Executive Officer
    Shōkunin, Inc.
    Access to Capital for
    Commercial Real Estate / Commercial Business / Renewable Energy
    Strategic Exit Planning for Business Owners
    213.453.9418
    www.marcelobermudezinc.com
    www.linkedin.com/in/marcelobermudez

    Book a meeting here: https://bit.ly/MeetwithMarcelo
    Submit your new capital requests Here: https://bit.ly/Shokunin2

  2. #2
    Senior Member Reputation points: 66298 Olderguy's Avatar
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    Sep 2021
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    Dude....BK the credit cards (if he doesn't want to do this, get another client) ...Offer in Compromise on the federal taxes but deferred as non-collectible. If older than 3 years, can be discharged. see below. Ignore state taxes for now and advise non collectible. May also be put in BK. Hire BK attorney and Tax attorney.

    If you need to discharge tax debts, Chapter 7 bankruptcy will be the better option—but only if the tax debt qualifies for discharge (not all do) and you're eligible for Chapter 7 bankruptcy. All of these conditions must be met before you can discharge (wipe out) federal income taxes in Chapter 7 bankruptcy:

    The taxes are income taxes. Taxes other than income, such as payroll taxes or fraud penalties, can never be eliminated in bankruptcy.
    You did not commit fraud or willful evasion. If you filed a fraudulent tax return or otherwise willfully attempted to evade paying taxes, such as using a false Social Security number on your tax return, bankruptcy can't help.
    The debt is at least three years old. The tax return must have been originally due at least three years before filing for bankruptcy.
    You must have filed a tax return for the debt you wish to discharge at least two years before filing for bankruptcy. (In most courts, if you file a late return (meaning your extensions have expired and the IRS filed a substitute return on your behalf), you have not filed a "return" and cannot discharge the tax.
    Last edited by Olderguy; 01-21-2022 at 09:10 AM.
    Steve Benjamin
    Professional Business Loans

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    949.228.1050


    @ 24 hour funding working capital loans
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  3. #3
    We'll take a look at it! iso@capital-infusion.com

    We have no bank charter so have the freedom and flexibility to do logic-based underwriting. Call me directly and let me know what you need to get it done. We like to get funky 305-306-3060

    Send deals to iso@capital-infusion.com


    Josh Waxman
    VP Sales & Business Development
    E: josh@capital-infusion.com
    P: 305-306-3060

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