Business Debt/LLC Credit Card Debt

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Expert: - 8/27/2008


Question
I opened an LLC in DC almost two years ago.  Due to the downturn in the real estate market, I have about 35k debt.  Although I can't make the minimum payment due, I do make at least $100.00 payments to both cards.  The cards were opened with the LLC's EIN.  A collection company now calls me for one card, and I think another calls for the other, although the caller ID says "Unknown", so I refuse to answer it.  They don't show up on my personal credit, but should I be worried that it will?  I have called and emailed the actual credit card companies, but have gotten no response from them.  Should I just keep doing what I have and when pay more when able?

Answer
David:
Thank you for your inquiry. I regret that you have suffered a downturn in your business. As it relates to your debts, the truth (and good communication) is always best when dealing with a creditor. If you say you are making payments of $100 per month because that is all you can do, than you need to contact the creditor, or collection agency and describe the nature of your hardship and get them to agree that that is acceptable. $100 for the debt you owe is not much and wont keep creditors off you for long, but worth discussing with them. Come up with an installment plan that will work and stick to it. Also don't assume that just because you believe this is in the business name that you have not personally guaranteed it through signature or social. You recently opened this business which in most cases is not long enough to establish true business credit, through a step by step process, not known or achieved by most small business owners. The banks know this and hide the guarantor language pretty well. If you think things may get worse, it may behoove you to look into some legal steps you can take regarding business closure or bankruptcy. You can always enroll the debt in a good commercial debt settlement plan to have it negotiated.

Hope this is helpful.

Respectfully,
C.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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