Business Debt/Closing Business

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Expert: - 11/24/2008


Question
I am the owner of a business that is incorporated in Georgia. I have already ceased all business transactions and liquidated all of the business' assets. This leaves me with approx. 25% of what I owe to my vendors. Is it best for me to try to settle with the vendors for the 25% or less, or to just declare bankruptcy on the business? Are the vendors likely to want to settle for this amount or would it be more beneficial for them to take me to court?

Answer
David:
Thank you for your question. I regret your business did not fare well and you were forced to close. You take a responsible and honorable position in wanting to repay your creditors something. In your position you can't loose by trying to negotiate for as little as possible to pay them off. If there are no personal guarantees, it is unlikely suing you will yield anything as the corporation and its assets are gone. It costs money and a lot of time and energy to sue someone, and as they say "a bird in the hand..." If after a couple of calls no one will bargain (highly unlikely in this economy) you can seek the advice of counsel who may have to do this on your behalf or who may recommend a BK. Make sure you get all deals in writing and verify that the settlement payment is final. I wish you the best in your future endeavors.

Respectfully,

Christine Janklow

Business Debt

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Christine Janklow

Expertise

As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.

Experience

My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.

Organizations
Provisors;Turnaround Management Association; Los Angeles area

Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."

Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising

Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.

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