Small Business Debt Relief Attorney in San Diego, CA
There are 6.79 million small businesses in the United States and of those 49% are in major debt. If you are a business owner who has had to take a cut in pay, was declined for financing, used personal credit to make ends meet, or has had debt collectors calling your office and sending debt collection letters, then you need debt relief help. While bankruptcy is always a last resort, declaring a bankruptcy makes your company an open book to the world.
Contact us today for Small Business Debt Relief! FREE Consultation.
What Are My Small Business Debt Options
Creditors realize that bankruptcy means they might not get paid anything. Most creditors would prefer to discount the balance due through a negotiated debt settlement rather than risk losing out completely in a bankruptcy. A debt settlement occurs when the debtor negotiates with their lender to reduce the total amount of your debt that you will need to pay back. Why would a lender agree to a debt settlement? If you can no longer pay your debt, the lender would rather you give them something rather than declare bankruptcy and give them nothing.
What Kind of Small Business Debt Can I Get Help With?
Call The Debt Settlement Lawyer for a free consultation to go over your options at 844-729-4866. He can help keep your business alive and profitable by resolving your business debt, such as:
- Business Credit Cards
- Business Loans
- Credit Cards with a Personal Guarantee
- Vendor and Supplier Debt
- Business Lines of Credit
- Equipment Leases
- Lawsuits, including Liens and Judgments
Small Business Debt Relief Case Story: A Family Business Survives and Thrives Again
Peter Simpson (name has been changed to protect confidentiality), a small business owner, operates a business installing home theater systems in new home constructions. Peter, a husband and father of three kids, runs the business with his wife who works part-time doing the books for the business, but gets very little income. In his business Peter relies on vendors to provide materials on short-term credit, usually payable in 60 days. Business was going well for Peter until the Great Recession hit. Construction of new homes slowed dramatically and his business dried up.
Peter and his wife depleted their savings trying to get through this down time. They relied heavily on credit cards for both their personal and business expenses. Fortunately, they were able to survive the Great Recession, but found themselves deeply in debt. They had personal credit card debt, business credit card debt, and debts to the vendors that supplied materials.
All in, they owed more than $300,000. They were barely making the minimum monthly payments on all of this debt – approximately $9,000 per month.
Bankruptcy was not an option. Peter knew his vendors would not continue to supply him with materials with a bankruptcy on his credit. He consulted with a friend who handled bankruptcies to see if he had any other options. The bankruptcy attorney referred Peter to an attorney he knew who handled debt settlements. Peter met with the attorney and learned that through a negotiated debt settlement, he could settle not only his vendor debts, but also his personal and credit card debt.
The attorney estimated that the Simpsons could settle the entirety of their debts for about $165,000.00, including the attorney’s fees.
The attorney gave Peter and his wife their options. They could continue to pay the $9,000, but to a separate trust account where funds accumulate to settle the debt. At this pace they could have all their debts settled over a 19-month period. Alternatively, they could spread the payments out over a longer 36-month period with payments of approximately $4,600.
The Simpsons decided to spread out the payments over 36 months. They dedicated the other $4,400 no longer used to pay the minimum monthly payments to their retirement plan. At the end of the 36-month period, they became completely debt free. Through debt settlement, the Simpsons easily paid down their debt, stayed in good graces with their vendors, kept their business thriving and comfortably started funding their retirement.