You could do debt consolidation.

Depending on how much debt you have, it may take some time. I hate advising this, but maybe debt consolidation. Depends how fast you want to get out of debt. Realistically, there is no legit, “get out of debt quick” scheme. It will always take time.

Your best option would be to create a corporation type of business. That way your business is a different entity from you. You, personally, won’t be held liable for the debt accumulated from the corporation. You will need a lawyer to draw up the papers for you and that might cost you somewhere around $500.

As for your personal debt, check to see what the statue of limitation are in your state for credit card debt. You can usually find this information on the internet. Basically what happens is you do not acknowledge that the debt is yours, ie: you don’t pay it back, you don’t make payments, you don’t answer your phone, you do not say the debt is yours. After a certain amount of years (Pennsylvania is 4 years) these creditors cannot come back on you with any kind of collection to get any money from you. They also cannot pursue a lawsuit. This WILL ruin your personal credit, but it will not harm the corporation.

Bankruptcy isn’t what it used to be. Now, you have to pay back either some or all of what you owe. Either way, your personal credit is ruined.

The only way to rid yourself of debt is to pay it off. I hate to be that blunt but it’s the fact. The money was borrowed or promised —- the other party is owed repayment.

All of that said — if you are struggling with personal debt, now is not the time to start a new business with additional debt.

1. Contact your local United Way and ask for a referral to the local “Consumer Credit Counseling Service.” DO NOT use one of the “services” that advertises on late night TV or in magazines. Many (most?) of them are scams.

2. Meet with a counselor who can help you figure out a budget and, if necessary, can negotiate with your creditors to accept lower payments and/or reduce interest rates.

The earlier advice about forming a corporation is “technically” correct but “reality” wrong. NO new business is going to be able to borrow without a personal guarantee from the corporate officers and that is not going to happen if the corporate officer has no (or has bad) credit. You can also plan to pledge collateral on a personal basis. (Example - the Small Business Administration requires a mortgage against the business owners home even if there is no real equity).

Get your personal credit in line before thinking about trying to borrow on a commercial basis.

Good luck and hope this helps!