I need to raise Big Money in a short period of time. How to do it?

Discussion in 'Homesteading Questions' started by Kenneth in NC, Oct 14, 2004.

  1. Kenneth in NC

    Kenneth in NC Well-Known Member

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    We need to raise $26,872 by January 15th 2005. Here's what we have we can sell The microwave cookware inventory of 1500 pieces. Tried selling here (barter board and ebay) Actual tooling to make cookware (cost $80 grand) I'd take $26,872 for it Today.

    Other than our home and land that's it for assets. As most of you already know I'm somewhat handicapped. In this part of podunk my skills aren't called for. My DW is doing her part trying to keep us afloat. My business (barter) partners moved out of NC and quite frankly I just haven't been able to establish a reliable cash flow since they left.

    The reason we need the money is to settle the heavy debts caused by my dads passing. It ain't pretty it just has to be taken care of and it fell on us to do it.

    I'm open to suggestions.

    Kenneth in NC
     
  2. twstanley

    twstanley Well-Known Member

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    Sorry to hear of your dad's passing.

    Are you obligated to pay these debts? Did you sign something saying you would pay them if the estate couldn't?

    Have you tried explaining the realities of your situation to the party you owe the money to and asking to work out a payment plan?

    Perhaps they would take a small amount per month to show your good faith while you work on selling your products/equipment and/or developing another income stream?

    As it sounds like it would be a real hardship to pay these, I was just wondering if just telling the folks wanting the money to file against the estate might work.

    If not, maybe refinance your house and land and get some cash out if you can?

    My wife and I recently had to do this to repay some overpayment by my employer while I was off in Iraq with my national guard unit. It was a pain, but it did get the situation simplified.

    As far as marketing, are there any trade publications you can advertise your equipment and/or products in?

    Are there any local business you could approach regarding carrying your products on their shelves on a trial basis to see if you can start generating some sales?

    Keep trying to list your products on ebay, maybe there is a combination of listing key words that will make your target audience suddenly "find" your auctions.

    Above all, keep your head up, there is a way out of this! Sometimes a debt like that will cause hopelessness to run rampant, but if you keep looking and working at it a resolution can be found!

    Good luck, let us know how it goes!
     

  3. Kenneth in NC

    Kenneth in NC Well-Known Member

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    A big part of these are tax related and the IRS has made it quite clear that we'll pay it or else.

    2 out of the 6 debtors understood and made concessions. the others aren't even listening.

    My relatives are @#$%^& well were no longer getting along. I won't rehash it just suffice it to say While my dad and I had patched our relationship before his passing he never changed his will or made plans to take care of things.

    This has become a depressing and black obstacle.

    Kenneth
     
  4. bubbba

    bubbba Well-Known Member

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    I wish you the best of luck it sounds like a real drag.
     
  5. rambler

    rambler Well-Known Member Supporter

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    Dad passed away a year ago this month. The estate is still not settled, but the taxes were due a couple months ago. My situation is not so bad, but it sure is a handful isn't it. And at just a bad time, memories good or bad, and so on..... Dad misfiled his last income taxes, & the a bank mis-filed some paperwork that same year - the bill owed was presumably 2x what yours is! Oh my. Took a long time to work that all out.... Dad was very poor at planning for any such thing. It's difficult.

    Sometimes these creditors lean on anyone they can, but the debt is fro the estate, not you - be sure it truely is _your_ responsibility, don't assume just because it's a bill with your name on it they are billing the right entity. I can guess how you are involved, & won't follow down that trail..... Life sure has ups & downs doesn't it?

    The govt usually will go on a payment plan with you. Every form I got from them always had that note along with it. But be sure to settle something somehow with them before the deadline. They generally are easy to deal with on a plan - if you can cut through the form letters & get to a real person.

    I'm not much help, but many of us have been & are there....

    --->Paul
     
  6. AngieM2

    AngieM2 Big Front Porch advocate Supporter

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    Ken why would the IRS think YOU owe it, and not whomever inherited?

    And the IRS will work out a payment plan and will let you do small payments,

    I miss calculated the year my daughter got married, and owed some taxes - large for me. I'm making small payments once a month (actually doubling them as I can). They do charge interest though.

    AngieM2
     
  7. shepmom

    shepmom Well-Known Member

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    My condolences on your father's passing.

    Have you tried setting up a table at the State Farmer's Mkt? I don't know if they allow that, but might be worth checking on. I don't know where in NC you are, but another thought would be at the State fairgrounds Flea Market. You want someplace where lots of people come to and locations where the folks have good paying jobs. $$ to spend

    You mention your skills aren't desired, but have you considered re-training or looking at jobs that may require other skills than your current abilities? Apprenticeship?

    Would bankruptcy assist you in your current debt?

    The tax related debt I know can be set up on a payment plan. Fella down the road got hit hard after evading paying taxes several years on his business and employees. His re-payment plan will be with him and his family a looong time, but no way were they given a few months deadline.
     
  8. BCR

    BCR Well-Known Member

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    Kenneth-first, let me say I am sorry to hear of your loss.

    Are you the executor of the will? That is who needs to pay the debts from the estate. Not enough money in the estate? Too bad. Get legal advice, it would be worth the $100.

    I was the executor of my dad's will. I didn't owe the money, he did. If he wouldn't have had enough money, everything would have had to been sold to pay as much of the debt as possible. Luckily, he had enough.

    I still don't see why you owe it, unless you and he were in a business together and both owe the taxes or co-signed for something together. Or you inherited the property that has some value that could be sold for cash to pay debts and you don't want to sell it for some reason.

    If none of the above, refer all of his debts to the executor of the estate and refuse to talk to anyone.
     
  9. Mudwoman

    Mudwoman Well-Known Member

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    Ken,

    One thought on the cookware would be sell raffle tickets somewhere for it. You might break it up into sets or do a raffle where winner takes all? Not sure how best to do it, but this just came to mind with Christmas coming, you might get something out of it.

    A good tax attorney or CPA may worth the fee to consult with. They may have ideas that the rest of us wouldn't think of in a hundred years.

    I sincerely hope all works out for you. You need a break!
     
  10. Queen Bee

    Queen Bee Well-Known Member Supporter

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    Kenneth, if you went to the NC Fair Grounds in Raleigh and set up a stand and sold you cookware for 3-5$ each pc. you would have more than enough to pay off your debt, pay your travel and space at the market... Do it now and do a marketing program for Christmas sales... Most people can/will part with 5$ without to much thought and then you can do it on Saturdays... Don't do it just one Sat. because most people will tell others about our products..Good luck Debbie
     
  11. countrygrrrl

    countrygrrrl PITA

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    Kenneth, did your father have a house or any real estate or any other assets?

    When my dad passed away two years ago, essentially his house and all other physical property were taken ( for lack of a better description) by a bank UNTIL all his debts were paid. My oldest brother was executor but essentially his hands were tied (which was okay), as he was overruled by the bank on everything (which ended up being okay but was quite the nail-biter in the interim).

    Where was your father living the past few years of his life?

    edited to say: Actually, my dad made the bank co-executor, just in case there was a family fight. Which I understand his intentions --- but the only problems we had were with the bank. :no:

    Also, are you the executor of your dad's estate? I'm not sure how you can inherit his debt unless it is that you're executor and need to pay certain things from out of the estate - ?
     
  12. sidepasser

    sidepasser Well-Known Member

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    Hi,

    I can't understand how you could be held liable for your father's tax liabiilities unless you signed an agreement with the IRS agreeing to pay the debt? After having settled three estates within 5 years, and executrix of one will, I never had to pay any taxes that were owed by the decedant. As was explained to me by my very competent attorney, taxes would be paid out of the proceeds of the estate first, then other creditors come second. Then if there was anything left over, it would be divided according to the stated will (minus attorney's fees). I even got reimbursed by the estate for my expenses in selling the house.

    I guess we are all kind of in the dark as to why you should shoulder the entire burden of payment or shoulder the burden at all? As far as selling your business, have you tried any small entreprenurial services or a business listing service?

    Sidepasser
     
  13. mightybooboo

    mightybooboo Well-Known Member

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    I needed a quick 25,000.Went to credit union and got a revolving line of credit on house.Went in on Monday,money in acct. on friday.They wanted to know what I paid for house,and current equity.Thats it,didnt ask for anything else,no pay stubs,no appraisal.Very well done I must say.
    BooBoo
     
  14. rambler

    rambler Well-Known Member Supporter

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    Sure seems to be a lot of speculation on this. :) My guess would be that dad floated a loan for the business, & the govt will come after that & call in the loan to get paid..... Only thing that would make sense, but I'm _only_ speculating, which is about like being a gossip, and that makes me kinda a bad person.....

    --->Paul
     
  15. Kenneth in NC

    Kenneth in NC Well-Known Member

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    First thing let me say I appreciate your help and kind wishes.

    Paul I'd never think you a gossip or bad person. It really has a lot to do with the way my uncle handled the estate. My dad's 401K and other investments had not had taxes paid on them. My uncle being a real jerk used every loophole and delay tactic until quite frankly I got the short end of the stick.

    I have discussed at length with the IRS and maybe a payment plan can be put in place but at the rate of penalties and interest it feels more like loan sharks we owe.

    Debbie were in the lower end about 38 miles sw of Charlotte. Hmmm Debbie 1500 pieces times $5 bucks is $7,500. Admittedly that'd help if we sold all at once. Raleigh is about a 5 hour drive but with the interstate construction and race traffic this time of year it'd be more like a 8 hour drive. Then there's the "how to get product to Raleigh"? Our pick-up could carry maybe a 100 units.

    Did I mention that a lot of the inventory IS NOT boxed? It's in big heavy boxes.

    The tool steel it's self weighs 1200 pounds per pallet 4 pallets to transport.

    The large units (1000) Retail for $49.95 and sold in Speciality catalogs for $29.95 + 8.95 shipping ($38.90) The small unit sold for $15.95 and $6.95 shipping (22.90)

    For those who have no clue what I'm talking about see pics below.
    [​IMG]

    Kenneth in NC
    healthwizard@surfbest.net
     
  16. srj

    srj Member

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  17. almostthere

    almostthere Well-Known Member

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    Don't have any great advice here, I just wanted you to know I'm feeling for you in your loss. We lost my aunt 3 months ago and my gramma(aunt's mom) just this morning. (I don't think gramma even had a will, and I have no clue whats going to happen next.) The IRS thing isn't making things much better, is it? I hope you get things settled out. I agree with an earlier post-you should lawyer up. You may be executor but you didnt make his financial decisions until the very end and somebody at the IRS office should be made aware of that. A lawyer will make sure someone listens. Your only recourse may be to go after the one who messed everything up, that is, if you still have the energy left. I would also like to mention, that all those items that they sell on tv that say you can't buy them in stores....are at target and walmart. they even say on the pkg that you can only get it on tv...it might be an avenue for you. Again, sorry for your loss, hope all goes well.
     
  18. JulieNC

    JulieNC Well-Known Member

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    Free legal advice is worth exactly what you pay for it. :)

    With that being said, even if there is technically no "estate" (which might, for example, be the case if your dad owned a lot of stuff jointly or had POD or TOD designations), the tax burden falls on the folks who got the property, whether or not they got it through probate. If there is no probate estate, most states allow you to open one (even with no assets) for the sole purpose of collecting taxes from the folks who received the decedent's property.

    If you haven't seen an estate tax attorney, it would be well worth your while.

    Just a thought.
     
  19. srj

    srj Member

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  20. Kenneth in NC

    Kenneth in NC Well-Known Member

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    Thanks guys (& gals) for all your insights.

    I don't want to go into great detail but the gist is. My dad and I had issues back in the 1990's and it took a while to iron them out. He was called before he had the chance to undo some of the thinghs he did out of anger. I forgave him and even though my uncle ended up with prettymuch everthing outside of the few bucks my name was attached to. I'm trying to just let it go and take care of the problem in stead of taking care of the uncle.

    No I was not the executor of the estate. My uncle was. As far as NC is concerned the estate is settled and the IRS agent whom acted as if he understood said that the "legal" issues was all he could he act on. I know from research that the idea behind the IRS penalities is that the debtor will find "other" financing options and pay the debt faster.

    I don't believe dad meant to hurt me and my family it was he didn't take care of the legal issues. Of course none of us know when were going to die or we'd already have things taken care of...Right?

    Thanks again, Glad I'm part of a forum where I can vent and have constructive replies.

    Kenneth in NC