<<< Your opinion >>>

I fail I'll still have paid back over $20,000 on the cards. :|

How notable of you to pay just under 1/2 the balance you took from them.

 

If you have $45K sitting around, and can afford to just burn up $20K of it, why is credit the limit in your ability to start or grow a business?

Your full $45K applied to capitalize that business (or even to cover your living expenses) would go farther to build a business in which you would still own most of it, than manipulating your appearance of creditworthyness to get investors.

If it is that good a business opportunity, why can't $45K get you to where you are making a profit, and can feed your profits back into the business? And if it is not, dragging in investors will just complicate the mess if it stalls and fails, and increase your risk as your "partners" will bail sooner than you would investing your own money.

Apple was initially capitalized from the sale of an HP calculator and a $2K VW minibus, along with 30 day-Net terms from suppliers.

Regardless of your credit reports, you are not bringing either capital or credit to this deal. Once you consider investors, you have to consider what you bring to the deal, and whether they, or some other competitor you may not even be aware of, can just shove you aside and take it away from you.

 

you did say in earlier post that you were keeping 10,000 in safe exit money and then took it down to 2. So before you jump down anyones throat for misquoting you, read what you wrote.

second, it is a business. if you are selling a large some of merch over the internet it is a business albeit a small one.

investors don't care about your credit report. they care about your ability to make money. and if they see that you were selling items at a loss they will realize that your business skill are lacking common sense.

now if you default on paying back the cards other credit card providers will not be that willing to extend credit to you.

your plan has so many flaws that you are destined for failure. what is your return policy? are the warranties transferable from you to the person who's buying it from you? is it buyer beware? and since you called me a dork and started the name calling. you're an idiot for even considering doing something this stupid. but what do i know?

 

So, if I'm doing the math right, myname1001 is going to get $25,000 in cash by borrowing (and, hopefully, paying back) $45,000. If he did that in the span of a year or so, that would amount to about 80% interest (not to mention the interest rate of his credit cards).

I might not be a Wall-street wizard, but my dog could probably get a better interest rate than that (well, if I had a dog, that is).

Something is seriously fishy about this...

 

mynane1001, I suggest you consult a lawyer, and a good one at that. I might not be as well versed in dealing with CA's and CRA's as some of these guys but I can tell you that bancruptcy is not that cut and dry. At least not in the state of NY and especially not in the last year. My boyfriend is in the process of filing bancruptcy and is using one of the best (highly successful and recommended) attorneys in our state and it's still taken two years to make the decision to do so and it's only as a last resort. I think bancruptcy is a lot more detailed and invasive than you are assuming. I'd speak to a professional and then weigh the pros and cons before going ahead and doing anything.

 

Do you have a plan to handle the IRS? I would think your return (either personal or business) will raise a few red flags. I would think they would be very interested in your plan.

By the way, why are you getting so defensive? You posted (on your own volition) an overview of your plan and asked for opinions. So far, no one has thought it was a good idea. No one made you post here, and you don't need our approval. Do what you want, your going to anyway. At then end, feel free to come back, read the posts here and maybe, just maybe, some of it will be able to help you back out of the hole you dug for yourself.

 

I usually do not post replies like this, but this is the most ridiculous thread I have ever seen on any forum of this type!

If your true objective is to start a business, and your credit is sufficient to purchase $45,000 in merchandise, then why don't you try for a business loan directly?

If you are so concerned about the consequences of bankruptcy on your personal credit, then do the proper business process of incorporating as an LLC business, apply for an SBA loan, and open business credit to accomplish these strange capitalizing scenarios.

I must question your business sense if you are starting off this way. If you are truly serious about following the "plan", then be a business person, and spend the money to sit down with a bankruptcy lawyer, and walk through the "what if" scenario.

I can tell you that at some point you will be asked about the origin of your start up capital, and if you show that you sold $45K of merchandise purchased on credit cards, you will throw up the red flags.

So, if you believe you have a viable business strategy for a website, then go talk to your local SBA for true advice and help. There is plenty of good business advice out there for free, you don't need to pursue wild ideas like this one.

Lastly, this forum is intended for consumers who are trying to repair their credit with real issues. I do not beleive this type of topic is in line with the intent of this forum.

 

You can answer all banking questions sign the form and the next day change your banking information.You were truthful on the day you filled out and signed your name to that legal form.There is no law that says you can't switch accounts the day after.Also with liens on a house or car there is an exempt amount you are entitled to receive before all liens are satisfied.For every action there is a reaction.

 

INTENT TO DEFRAUD - the specific intent to deceive or cheat, ordinarily for the purpose of causing some financial loss to another, or bringing about some financial gain to one's self. It is not necessary, however, to prove that the United States or anyone else was in fact defrauded so long as it is established that the person acted "with intent to defraud." You willfully gave them that information and the next day closed the account knowing that you had a transaction still to run through that account.