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Business Debt/Unsecured Business Credit, no personal guarantee

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Expert: - 4/12/2011


Question
Hi Christine.  I had an LLC in NH that failed.  I have a couple unsecured credit lines/cards that I did not personally guarantee that are in collection.  I am unable to pay these at this time and was wondering what if any type of action can be taken against me.  What is the collection process in this situation.  They are all relatively small balances around 1000.00.  Thank you.

Answer
Kevin:
Thanks for the question, however don't be so sure that a personal guarantee does not exist. Even if you claim not to have provided a SS, most banks when issuing credit, have hidden language where businesses are concerned that require an owner/partner to guarantee. If the debt defaults the bank will assign it to a collection agency eventually, if not paid may charge off, and all the while the personal guarantee will play part in the collection effort. If an agency can find you, regardless of the status of your company they will try to get you to pay and it becomes very hard to avoid. Collections can happen forever, although they can only sue you up to the Statute of Limitations. You should simply consider settling shortly after you stop paying, get a settlement letter from the banks or agencies and be done. No need to lose sleep over it, you owe the money get it paid as best you can and move on.

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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