Expert: Christine Janklow - 6/11/2007

Question
QUESTION:    Dear Christine,

  A business partner owes money to my company, we have a signed contract
and emails confirming the debt. I told them that if they don't pay, I will file
complaints with all the organizations from our field of activity and I will also
announce all the business partners of the companies where they work or own
stake, about their way of doing business. Is this possible to be considered a
threat? Or should I simply ask a collection agency to take care of this debt of
$15,000?

ANSWER: Dear Aurelian:
Thank you for your inquiry. This is a matter that extends beyond the financial aspect of your arrangement. Let's put it this way, what would you expect if the shoe were on the other foot and you owed your partner $15,000? Most people would expect that the partner, whom they trusted at one point when entering the relationship would at the very least explore if there were a legitimate hardship preventing prompt repayment of the debt. Secondly, if that were the case for the parties to try and work out a suitable payment arrangement whereby no one needs to seek further action. If that were not possible or you simply did not have time to take care of the matter on your own, you could certainly have a professional debt collector step in and deal with it on your behalf. My point is, do not engage in activity, that might slander your partners reputation in any way as most likely it will hurt your standing in the business community as well. People are much less likely to do business with someone who will defame them if a deal goes sour due to unexpected circumstances. End of the day, it's just money and every time we loose some it is an opportunity to learn what we would do differently next time around. I hope this was helpful and I wish you luck in resolving your situation.

Respectfully,

Christine Janklow

---------- FOLLOW-UP ----------

QUESTION:    Dear Christine,
  Thank you for your kind and subtle answer. You are right and my heart
hurts that I have to think at the option of contacting the persons and
organizations working in our field of activity and those who regulate it. But
my partners owe me this money since December and I have made several
attempts to negotiate, to settle the dispute and I had all the patience in the
world. I also agreed to a plan suggested by them in March, of bi-weekly
payments of 5,000. But they broke their promise and no money were paid
back to us since then.
  Now, in a clever move, they tell me that the company will file for bankruptcy
if they do not find a buyer, but they keep on working in the same team in
another company, doing the same business!! Is this ethic?
  So even in this case, do you think it would be a mistake to inform
everybody about their business conduct? I will never defame anybody, I just
want to warn others that what has happened to me could happen to them
someday.
  Thank you again for your attention and I am waiting for your answer with
the  
same great interest.
  Best regards, Aurelian

Answer
Dear Aurelian:
It appears as if you have done all you can to work something out with your business associates. Regrettably, they have not complied with your generous offers. My main concern for you at this point is that you take a step back from this emotional situation as it is likely to be causing great distraction in your business life. Based on what you have disclosed, this matter might be best handled by a competent attorney who can pursue the matter legally or engage a collection agency. Either will cost money out of the deal or even upfront, but it will ease your responsibility toward collections activities. Apart and aside from what is owed, a word to the wise...We can only control our own actions, not that of others. Whether or not you feel these people have betrayed your trust or acted unethically, we have some choices as to our response; either rise above it and let others aid you in cutting your losses or resort to spending your time "saving" others from your own misfortune. The most good would result from you moving forward, and getting this matter resolved as quickly as possible. We are all on our own out here and as most business owners we often must learn these things from difficult situations as these.