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Question
My husband is a sole prop of a flooring store that we closed due to the economy. We sold what little assets we had, displays basically to someone that opened a similar business at the same location. I currently owe approx $40000 to my vendors which have been taking what little payment that I can provide. I am currently seeking info on Debt Consolidation companies to settle these debts before I seriously consider bankruptcy. My main concern today is, how much info about my debt is allowed to be shared with the new business owner. I have given a new telephone number to all my vendors but, they are freely telling the new business owner about my debt. Is there no privacy? The new business owner has opened his own accounts with these vendors under his own business name etc. He has even been told that his credit account is not going to be opened until I pay my account in full with one of the vendors. Is this legal?
Dear Katy:
Thank you for your question. I regret that your business did not survive this tough economy. You are right to explore options regarding debt management and invite any other questions you may have about the subject of settlement as my firm specializes in business debt restructuring. A word to the wise, stay away from consumer debt settlement companies altogether or any whose settlement fees are not performance based. As for collection issues, it would appear that one of the vendors (likely a BtoB) has disclosed certain facts about your past due account to someone other than you (the guarantor). If this were consumer debt, this would be a BIG no no, as debt collectors are NOT allowed under the FDCPA to speak with or disclose any facts about your accounts with anyone other than you, your spouse, or attorney in fact. However, based on what you have described,this is Business Debt which does not fall under the guidelines of the above. Unfortunately,how the rights of business owners is protected from these practices is vague. I have dealt with many Vendors that sometimes think by "telling" a new owner or partner about this, and furthermore refusing credit to them as a result of your liability will get someone to cough up some money. This is often misguided and futile and in my experience not always the best option to maintain good business relations.
Respectfully,
Christine Janklow
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Answers by Expert:
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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