negotiating business debt

by mae
(indianapolis indiana)

I owe $69,000. They will settle for 34000 but want 5000 monthly. This is for a business account. They say they will go after my assets. What does this mean and how can i get them to lower my monthly payments?

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Sep 30, 2010
 negotiating business debts
by: Gerri & Mary

Mae,

You don't indicate whether this is a credit card debt or another type of debt but we assume it is an unsecured loan.

If you can afford to settle the debt the amount you're offering, then that may be one way to put it behind you. But if you can't afford the amount or payment schedule they are proposing, then it's simply not an option for you.

As far as what they can do to collect, that's a matter of state law. With many small business loans, there is a personal guarantee. If that's the case, they can go after your personal assets as well as assets of the business.

In addition, the federal Fair Debt Collection Practices Act does not apply to business debts. That means the protections we outlined on this site may not apply to this particular debt.

Mae, we encourage you to at least get a free consultation with a bankruptcy attorney to discuss your options here. The attorney will be able to tell what assets are at risk, and offer you some suggestions in case you are unable to reach an agreement with this creditor.

You may also be able to work out a better settlement with this debt. You can find out more by listening to our debt settlement podcast which describes how this process works.

We hope you're able to find a way to put this behind you!

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