Is bankruptcy or debt settlement better for a small business?

First of all this is my son's situation and he has no idea what to do about his financial situation. I saw your ad in the newspaper and wanted to see if there was anything you could do to help get him out of this before considering bankruptcy. He has his own business and it has steadily been going down. He owes a lot of money to banks and credit cards, but I don't know exactly how much. I know it is over $50,000.

One of the accounts is Advanta, this has gone to collections and the guy keeps calling to settle before taking him to court.

He has managed to pay these debts until about 5 or 6 months ago I think. I am the one working at his store and he mostly works from home so this is how I found out that he was in financial trouble.

We could schedule an appointment but I want his dad to sit in on this so we know something is getting done and if it turns out you can't help then hopefully you can advise him on what to do.

We were going to get a lawyer to help with this but rather hold off for now. Right now he can take care of the house and bills for that we have helped him with some of this too. I know you will need more information from him but this is a little of what I know.

Thanks and please let me know something soon I am afraid these people will take him to court before we can do something and there will be others also .

What is the best way for my son to take to deal with debt from his small business?

—linda