Chesapeake Business Debt Relief and Debt Settlement Lawyers[yoast-breadcrumb]
Need Help with Business Debt in Chesapeake, VA? Here’s What to Know About Debt Relief & Settlement
Running a business is hard work, and sometimes expenses can pile up, leading to overwhelming business debt. If your Chesapeake business is struggling under the weight of debt, you may be looking for solutions like debt relief or debt settlement. But how do these options really work, and could they help your business get back on track? As business debt relief lawyers in Chesapeake, we’ve helped many local companies explore debt solutions, so we wanted to share some insider knowledge on your options.
First, What Type of Business Debt Do You Have?
When weighing debt relief vs. debt settlement, the first thing to look at is what kind of debt your business has accumulated. There are a few major categories:
- Business Loans – This includes bank loans, SBA loans, business lines of credit, and financing from online lenders. These usually have set repayment terms.
Business Credit Cards – Most businesses have credit cards, and the debt on these can really add up due to high interest rates.
Accounts Receivable Financing – If you use invoice factoring or another type of AR financing, you may owe money to those alternative lenders.
Unpaid Invoices – If clients aren’t paying their invoices, that can quickly turn into debt for your business.
Back Taxes – Unpaid payroll or sales taxes? That’s debt too. The IRS and state don’t mess around.
Business Judgments – If a court ruled that your business owes someone money, that’s considered debt as well.
So take a look at the different debts your Chesapeake business has, because that will impact the type of relief or settlement that could help.
Pros & Cons of Business Debt Relief Options
If your business is facing unmanageable debt, you essentially have three options:Debt ConsolidationThis is where you take out a new loan to pay off multiple debts, simplifying it down to one monthly payment.Pros:
Lower interest rate than credit cards
Fixed monthly payment
Need good credit to qualify
Loan fees can be high
Still have to repay full amount
Many Chesapeake business owners find debt consolidation helpful, but it’s not a fit for every situation.Debt SettlementWith debt settlement, you work with creditors to pay a lump sum that is less than the full amount owed. It requires stopping payments while you negotiate.Pros:
Settle debt for less than you owe
No need for good credit
Damages credit score
Creditors may balk and sue
Owed taxes can’t be settled
Debt settlement can slash balances, but also comes with risks like lawsuits. It works best for unsecured debt like credit cards.BankruptcyAs a last resort, filing Chapter 7 or Chapter 11 bankruptcy can eliminate many business debts entirely.Pros:
Wipe out most debts completely
Stop creditor harassment
Very damaging for credit
Costly legal fees
Lose collateral assets
Bankruptcy provides a fresh start, but makes it hard to get financing again. It’s a major decision with lasting impacts.As you can see, each option has pros and cons to weigh carefully based on your business’ specific situation.
Should You Work with a Debt Relief Company?
Here in Chesapeake, you’ll find many debt relief companies advertising their services to struggling business owners. Some promise to slash your debt or make it disappear entirely. This might sound appealing, but beware – some of these companies use misleading claims or even unethical practices.The Federal Trade Commission has filed lawsuits against many debt relief companies for deceiving and harming small businesses. Common problems include:
Charging illegal upfront fees before providing any services
Making false claims about being able to eliminate debt
Telling customers to stop communicating with creditors
Collecting payments without actually settling any debts
While there are legitimate debt relief companies, it’s crucial to do your homework. Get everything in writing upfront, research the company’s reputation, and check for any complaints filed with the Better Business Bureau or state attorney general.And remember – no debt relief company can make debts disappear like magic. Achieving results takes time and effort. Don’t trust any promise that seems too good to be true.
How Chesapeake Bankruptcy & Debt Relief Lawyers Can Help
Here at Delancey Street, our Chesapeake debt relief and bankruptcy lawyers take a different approach. We provide customized guidance based on your business’ specific financial situation and goals.Rather than making sweeping promises about slashing debt, we have candid conversations about the pros, cons and feasibility of different debt relief options. We’ll explain how each option really works, any risks or downsides, and the realistic timeline and outcomes you can expect.Our lawyers have helped many Chesapeake business owners:
Negotiate with creditors for reduced payoff amounts
Consolidate and restructure business loans into more manageable terms
Create affordable debt repayment plans to avoid bankruptcy
File Chapter 11 bankruptcy when needed to rightsize debts
Discharge crushing tax debts where possible
We can also defend your business against creditor harassment and debt collection lawsuits. No matter what debts you’re facing, our first priority is giving you the facts so you can make an informed decision.If you choose bankruptcy or debt settlement, we will walk you through every step of the process and represent your interests every step of the way. Our goal is giving your Chesapeake business the fresh start it deserves.
Don’t Face Business Debt Alone – Schedule a Free Consultation
Dealing with overwhelming business debt can feel scary and stressful, but you don’t have to go it alone. Our Chesapeake debt relief lawyers are here to help your business get back on stable footing, free from debt burdens.We offer a free, no-obligation consultation to review your business debts, finances and goals. We’ll explain your debt relief and bankruptcy options and give our honest take. There’s no charge for this service – it’s simply our mission to provide debt help and peace of mind to Chesapeake business owners like you.Don’t wait – the sooner you reach out, the sooner we can start working on an action plan. Request your free consultation today and take that first step toward business debt freedom!