CAN I BORROW AGAINST PROFIT SHARING?

Everybody’s Uncle,

My employer has sold the company and I have profit sharing that I just cashed out to pay an auto loan that I can no longer make the payments on. It is going to take a while to receive the money. Is it possible to borough against the money that is coming. I do not want to miss a payment the bank said I can not get an extension or skip a payment.

(Unsigned)

Unsigned,

I know of no lender that will advance money against anticipated funds unless they are secured by a judgment, insurance company, lottery, tax refund, mortgage, etc. Contact the entity holding your funds and ask for an “emergency” distribution. Unless there are encumbering circumstances, your profit sharing has no reason to be delayed.

If your credit rating is in good shape, a credit card issuer will almost certainly provide a payment or two. Pawn shops provide loans against jewelry or other item with resale value. Any thing you could sell to raise funds? Family or friends might soften if you offered some collateral until you get your profit sharing.

The bank might not have a mechanism in place to postpone a payment, but other than a blemish on your credit rating, a late or single missed payment is not a terminal event. Send a partial payment – better than ignoring a due payment.

Everybody’s Uncle