Business debts are a glaring reality during a time when the whole world is adjusting to the “new normal” post the pandemic. The economic crisis that every expert has been talking about since all these months is now here. And unfortunately, there are many businesses that are shutting their doors now.
We, at Nelson, Cooper, and Ortiz LLC, are receiving the cases where businesses are getting into debts and hounded by the collectors for debt collection for the money they owe to others. Now, if you are a business owner dealing with debts and business closure, then you are in the right place. Take a look at the following points to know what you can do.
Work as Per Your Company Structure:
Different company structures have different ways of dealing with debts. If you are a sole proprietor of a company, then you are going to be the target of all debt collection agencies. You will be liable to pay the money back. If yours is a partnership, then the responsibility might not be completely yours. If your company is a corporation, then you and the other stakeholders might be shielded from personal liabilities. In any case, see the structure that your company has.
Pay What You Can:
Pay the debts that you can pay right now without liquidating the assets of your company or your personal assets. In case you share a good relationship with the creditor, you can give a proposal for settlement. Companies that offer credit collection services can also help you as a third party in the settlement with your creditor.
If none of your creditors is willing for the settlement, then declare bankruptcy. Keep some money for surviving the bankruptcy process and leave it on the court to decide which creditor will get how much and how that money will come from your company. Before that, talking to a lawyer will be better to help you get prepared for the consequences.
So, now as you know how you can deal with mounting business debts, don’t waste time. Implement these steps. And if you are looking for a Houston commercial collection agency for recovering your money, then come to us. Call at (800)9397213 or visit https://prelitigation.com/