Business Debt/Business Debt

Advertisement

Expert: - 5/27/2010


Question
I closed down an incorporated business instead of declaring it bankrupt due to the economic situation.  I was able to work with debtors and pay out all debts except one who never responded to my call, letters or attempts to cancel the advertising package nor did they respond to any negotiations.  They are now, after a year sending the account to collections after not dealing with me directly and wanting 75% of the debt which is simply not possible as the funds are not there to pay it.  If they proceed with a lawsuit for the amount owing what can happen as the company has no assets left and the business is now closed (final closing paperwork is in process). Please advise.  The debt is unsecured and there are no personal guarantees.

Answer
Claudia:
Thank you for your inquiry. I noticed you contacted us from Canada, and am not familiar with incorporation laws or rights regarding debt collection in that country. Generally speaking however, if no guarantor exists other than the corporation itself, there will be nothing more a collection firm can do. If they insist you pay as guarantor, you may respond with a request for them to verify in writing proof of guarantor and that the debt is still valid under statute of limitations in Canada.

Respectfully,

Christine Janklow

Business Debt

All Answers

Answers by Expert:

Ask Experts

Volunteer

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.

©2012 About.com, a part of The New York Times Company. All rights reserved.