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Business Debt/BUSINESS DEBT WRITE OFF'S

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Expert: - 2/23/2011


Question
Our company was billed for valid web hosting services and related professional fees from Feb 2008 through Jul 2008. Since that time, we have not heard from the vendor to collect on the balance. We attempted several times to contact them to see if they showed any balance owed to them so that if they confirmed a zero balance on their books we could remove the invoices from our payables. We never received a response from the vendor after several attempts to contact them, and after some digging found out that they filed for bankruptcy reorg. Again, no contact from the vendor or from the trustee.

At what point can we write off the balance that we show due if the vendor is not contacting us or returning calls or emails? Our company is in UT, the last known address of the vendor is in CA.

Thank you.

Answer
Dear Elizabeth:
Thank you for your inquiry. From the details you described, the company (service provider) whom you owed money to has gone out of business and filed for Bankruptcy protection. In the event that they liquidated and are not going through a re-organization, it is unlikely they claimed to have any receivables owed them as this might have played against them passing a means test. Now, understand I am not an attorney therefore please do not consider this advice on that level. If the service provider is no longer doing business, than you may not hear from them again. However, technically they have 6 years in UT to collect if you had a written contract (4 years for verbal), from whatever the last payment date you made was. So if the debt is over 6 years, than it has exceeded the statute of limitations for collections. If you were to hear from them after that point in time, than they would have no recourse to sue for collections. Prior to that point in time, it is still an open account, and if someone such as the owner decides to collect that might cause you some pain. If it is possible, set some funds aside monthly in a "emergency savings" account over the next year or two in the event this one resurfaces (typically balance owed divided into equal parts over x months to save) or whatever works for you. Then if anything unforeseen happens, you can pay it without disruption to your other payables as you wont be in a position to have to scramble for monies. Hope you find this helpful and if so please take a moment to provide a positive rating or comment so others may benefit as well.

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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