Business Debt/Business debt

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Expert: - 5/12/2007


Question
Hello,

I have about 5000 I own one company and they said that i cant pay it in small amounts because i do not have the money to pay as the business went south.  They are going to force me to pay through legal or somehow. What should i do.  thanks,

Answer
Robbie:
Thank you for your question. I appreciate the pressure you may be experiencing in dealing with your debt situation. As the details of your situation are a bit vague, I can only suggest that when dealing with business debt, the old adage "you can't squeeze blood from a turnip" applies. Collection agents, which is probably to whom you are speaking will put enormous and undue pressure to collect money for which they are owed, but also compensated for collecting on behalf of the original creditors. Threats including that of legal action are common to get you to part with money you don't have. The reality is if this is unsecured debt and your company is struggling, they will need to take a back seat to other more important issues like making payroll, taxes, rent, etc. You need to get in contact with a Supervisor at the creditors offices and communicate your hardship. Explain that money is tight and ask for a hardship plan or some forbearance if it is a loan or lease. Most companies will work something out, and make sure you get names and whatever agreement you arrange in writing. Make sure if they do give you new terms you do your part and pay them as agreed. If you really can't do anything, than perhaps looking into filing a bankruptcy might make sense. Best of luck.  As well, if you found this answer helpful, please take a moment to rate it, so others may benefit from this forum.

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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