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Business Debt/Suing for personal loan

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Expert: - 11/19/2008


Question
He owes me $7,500. He has been collecting Calif Unemploymnent Insurance for almost a whole year now. All the while I have not received a dime from that income. He says "too many things come up." He owes no property (he lives with parents) and all he has to his name is a $9k car.

I don't doubt I will get the Judgement forcing him to pay me via Small Claims. I DO fear that he intends to file for bankruptcy thereafter and that the judgement (order to pay) will be discharged.

How is this fair? I am not a lending business. I have no insurance. No one protects ME from borrower's irresponsibility and broken promises.

My question: Can I be tactful as follows: I shall separate the claims into two separate suits, $3,750.00 each. I will await the bankruptcy and accept that they will wipe it out. Once that's done, I will re-sue in a separate case for the other $3,750.00. Since he can't do bankruptcy twice, he will have to pay me the $3,750.00 and aaaall that interest that will accrue because he's so 'broke.' At least I will recover a good chunk, rather then see the whole broken promise of $7,500.00 go down the drain.

What do you think?

Best regards,

Rafael

Answer
Rafael:
Thank you for your question, however I am not an attorney and my area of expertise is not related to civil collections issues. If this is someone or a business that owes you money you have every right to pursue them as a creditor, but you had better have substantial proof they owe you for goods purchased or services rendered, along with any documentation stating your many attempts to collect. You might just want to hire a collections attorney or agency (on contingency) to do this for you. They have specific ways to find assets, and facilitate payment on past due accounts. This seems more in your best interest than you being so consumed with emotion and the imminent outcome. Leave this work to the professionals, its worth the money in the long run. Good luck.

Respectfully,

Christine Janklow

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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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