AboutChristine 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.
Organizations Turnaround Management Association; Los Angeles area
Publications 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 and service providers.
Question I own an LLC that owes about $30,000 total to two different credit card companies.
Our business has not done well, and we cannot pay the minimum due, with the high interest rates, etc. We're in over our heads.
I am a mother at home, and opened an LLC to protect my family and assets, but the collection agency is saying I personally guaranteed the debt, which is in writing, although I wouldn't have opened the credit card if I knew this.
Right now, I have a good credit score, and my business problems have not hurt my household. My husband and I want to move to a new home in a year, but I'm concerned that my credit score will be damaged.
Can the creditors hurt my credit score?
If we can't pay, what's next?
Why doesn't my LLC protect me from this?
Some financial experts say that debt collection companies are a bad idea. How do I know if this is will help me?
Answer Dear Diane:
Thank you for your inquiry. I appreciate the severity of your situation and will try to provide as much advise as I can regarding how you may be able to resolve debts. First of all, I do not know if you are still in business, but it would appear you are not current on your accounts as it seems to have been passed on to a collection agency. If you have proof or written verification that you have signed a personal guarantee, than you are considered liable for the repayment. I understand your concern for maintaining a "good" credit score, but that is not always possible when debt mounts. If the business debt begins to report to you, than the additional debt to income will begin to erode your score, especially if you can not repay what you owe. Creditors do have a right to report and collect based on your guarantee. You may still have some options-
1. Get current (if possible) and negotiate lower payments or interest so you can catch up.
2. Consolidate the debt through an equity line or personal loan (will most likely secure the unsecured debt)
3. Seek Credit counseling to lower interest rates/payments. (Doing this will show up on a credit report)
4. Settle the debt by utilizing a commercial debt mediation firm (such as the one I represent)
5. File a Bankruptcy (Last resort, you would need to seek legal counsel to understand if you qualify)
Although I am somewhat biased, I believe that your best choices may be to get a personal loan to resolve this or consider enrolling in a settlement program. The latter might serve two benefits; it would lower your monthly requirement for payment, and it would enable that money to be used to settle the debt at a discount in a much shorter time period than you could pay back (sans loan) on your own. As it relates to asset protection, you need to be proactive in attaining a method to address the debt if you are going to get these matters worked out successfully. If you want a confidential and non-obligatory consultation as to how commercial debt settlement may help, please visit our website at www.franklinmediation.com and fill out a request for consultation. Please reference "All Experts" and I can contact you directly.
I wish you the best in finding a solution. Please take a moment to rate this answer so others may benefit as well.
Respectfully,
Christine Janklow
